Superdry to quit stock market in huge restructuring
Superdry has announced it will delist from the London Stock Exchange in a huge restructuring aimed at turning the fashion retailer's fortunes around.
It said it would be forced to enter into administration if it did not go ahead with the plans.
Julian Dunkerton, Superdry's chief executive and co-founder, said the announcement marked a "critical moment" in the company's history.
As part of the plans, the company is also looking to raise up to £10m through the sale of new shares, known as an equity raise.
Superdry said it wanted to delist from the London markets so it could carry out the restructuring "away from the heightened exposure of public markets".
The fashion brand, known for its coats and hoodies, has seen its share price fall from more than 500p to a little over 5p.
Experts have suggested the firm has struggled to appeal to younger shoppers despite partnering with influencers and stepping up its social media marketing on Instagram and TikTok.
The fashion business, which runs 216 shops as well as franchised stores, has been looking at various ways to cut costs after a year of weakening sales and deepening losses.
Mr Dunkerton said the proposals, confirmed on Tuesday, would put the business on the right footing again "to secure its long-term future following a period of unprecedented challenges".
It announced a range measures aimed at cutting costs over three years, including reducing the rents on 39 of its UK sites and extending the due date of large loans.
The company also wants to boost sales by improving its product ranges and reallocating marketing spend.
Mr Dunkerton will also personally back the equity raise, and said it shows his "passion for this great British brand remains as strong today as it was when I founded the business".
The retailer, which started out as a market stall in Cheltenham, was set up by Mr Dunkerton and James Holder, and did enjoy huge commercial success.
Delisting from the London Stock Exchange will also help Superdry save cash, it said on Tuesday, although the business will need shareholders to approve the plan at its next general meeting.
It is hoping to carry the move out by July 2024, according to a provisional timetable.
