Troubled fashion retailer Superdry has received court approval for its restructuring strategy as it looks to avoid administration.
The announcement on Monday comes after the firm’s shareholders on Friday approved a proposed £10m equity raise to help turnaround its finances.
The raise will be underwritten by Superdry’s chief executive Julian Dunkerton and is due to take his total stake to 75 per cent. The majority of Superdry’s creditors, including landlords, had approved the rescue plan earlier in the week.
“This is an important moment for Superdry,” chair Peter Sjӧlander said in response to the court approval on Monday.
“My thanks and those of the entire board go to the shareholders and creditors of Superdry who have supported the proposals, which will enable the business to go forward with the right structure, balance sheet and cost base to deliver its turnaround and future growth.”
Superdry, which has more than 90 stores in the UK, warned in April that it could go bust unless it radically restructured the business.
It proposed a three-year plan involving cutting rents on 39 of its stores, raising more funds and delisting from the London Stock Exchange.
However, the company warned that “the closure of certain stores… as a consequence of the implementation of the plan” was likely.
The retailer listed in London in 2010 in an initial public offering valuing it at £400m. But the company has struggled in recent years with consistently declining sales. In January, the firm reported that year-on-year group revenue fell 23.5 per cent to £219.8m.
Superdry’s shares rallied 26 per cent on Monday, although its stock price remains down 94 per cent since it floated.