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Superdry Poised for Swift Disposal Should Creditors Spurn Turnaround Proposal


Superdry Poised for Swift Disposal Should Creditors Spurn Turnaround Proposal

Superdry is preparing for a prompt sale spanning four weeks should the restructuring strategy presented by CEO Julian Dunkerton not win approval from creditors.

Should the arrangement fail to gain support in a timely manner, the fashion retailer will expedite a mergers and acquisitions procedure, as noted by Sky News.

Within the framework of Superdry’s turnaround plan, Dunkerton intends to commit £8m by offering new shares to investors or securing £10m through a private placement exclusive to him.

This sale of shares is slated to occur prior to the retail chain’s removal from the roster of the London Stock Exchange.

Contingent upon creditor rejection of the turnaround proposal, Superdry plans to commence a sale operation extending over four weeks, potentially resulting in a pre-pack administration, as indicated in a briefing to the creditors.

Previously, M&G, which owns the flagship property of Superdry on Oxford Street, deliberated challenging the rescue strategy, which aims to enforce considerable lease reductions across 39 stores, inclusive of 15 locations where the rent would be waived entirely.

Regarding the restructuring efforts, the retailer noted the likelihood of closing several UK locations and pinpointed 25 to 30 European outlets for potential discontinuation within the upcoming year.

In parallel, Superdry unveiled the intention to migrate to an alternative e-commerce platform managed by a third party, supplanting the existing infrastructure. This move is envisioned to “pave the way for a rejuvenated and streamlined online sales strategy both in the domestic market and abroad.”

Highlighting the critical nature of the situation, Dunkerton stated the importance of the plan’s adoption: “The company confronts a dire predicament. It’s imperative that these measures gain acceptance to facilitate the restructuring, ensuring the preservation of employment and serving the interests of all involved parties optimally.”

Image Source: Tang Yan Song @ShutterStock

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