Embattled fashion brand Superdry has said it will delist from the London Stock Exchange as part of a restructuring plan to keep the company alive.
On Tuesday morning, the board announced the move alongside a slew of other cost-cutting measures, such as rent reductions on 39 of its stores and the extension of the maturity date of loans made under the group’s debt facility agreements with Bantry Bay and Hilco.
Superdry will also be undergoing an equity raise of up to £10m which will be funded by founder Julian Dunkerton.
The chief executive said: “Today’s announcement marks a critical moment in Superdry’s history.
“At its heart, these proposals are putting the business on the right footing to secure its long-term future following a period of unprecedented challenges. I am aware of the implications for all our stakeholders and I have sought to protect their interests as much as possible in the proposals we are announcing today.”
He added: “My decision to underwrite this equity raise demonstrates my continued commitment to Superdry, its stakeholders, its suppliers and the people who work for it. My passion for this great British brand remains as strong today as it was when I founded the business.”
The British businessman, who has a 26 per cent stake in the company, had previously been in talks with a US private equity firm about a potential rescue deal.
Superdry, which has 94 stores across the UK, has been struggling to keep its head above water for months, launching a number of schemes to shore up extra costs.
Back in October, it signed a joint venture with Reliance Brands Holding UK Ltd (RBUK) for the sale of its intellectual property in South Asia, in its latest bid to boost funds.
It mirrored an agreement announced by Superdry in March to sell the intellectual property of its Asia Pacific offering to South Korean retail group Cowell Fashion Company for $50m (£40m).
Peter Sjӧlander, Superdry chairman, said: “The board has spent a lot of time engaging with Julian Dunkerton to come up with a plan which gives the business the best possible prospects for the long term while protecting the interests of shareholders and other stakeholders to the greatest extent possible.
“The business has faced extraordinary external challenges and, while good progress has been made on our cost-saving initiatives, more needs to be done to get the business on a stable financial footing for the future.”
He added: “We believe that the proposed restructuring plan, combined with the equity raise fully supported and underwritten by Julian, is the best way to achieve this, together with a delisting which would further reduce costs and enable the business to progress the turnaround.
“While we recognise the compromises we are asking from some of our stakeholder groups, we would urge them to support the proposals which we believe are the best way of ensuring Superdry’s recovery over the long-term.”