Superdry seeks rent reductions as part of restructuring plan

Superdry has revealed its restructuring plan as it seeks reductions in rent across 39 of its UK stores.

Furthermore, the company is set to delist itself from the stock exchange and receive an equity raise underwritten by founder Julian Dunkerton.

Restructuring is a formal procedure under the Companies Act for companies with financial difficulties.

The company hopes the plan will result in “material cash savings from rent and business rate compromises” across the three years of the plan.

The plan does not include any closure of stores but landlords will have the option of terminating its lease with the retailer if they were dissatisfied with the terms of the deal.

Meanwhile, the fundraising supported by Dunkerton is expected to raise up to £10m.

Dunkerton 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. My decision to underwrite this equity raise demonstrates my continued commitment to Superdry, its stakeholders, its suppliers and the people who work for it.”