Superdry wants to slash the rent it pays the landlords of 39 of its UK city centre stores, as part of an emergency restructuring deal.
The fashion retailer is also delisting from the stock market and is seeking an equity raise of up to £10m underwritten by its founder Julian Dunkerton.
The business, which runs 216 shops as well as franchised stores, has been investigsating money-saving measures after a year of weakening sales and deepening losses.
The plan will result in “material cash savings from rent and business rate compromises” over the next three years, the company says. It aims to achieve “a more stable footing, accelerate its turnaround plan and drive it towards a viable and sustainable future”.
In a statement Dunkerton says: “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.”
The restructuring plan is said to be dependent on the successful completion of the equity raise, which requires shareholder approval. Superdry claims it will have to enter administration if the plan is not implemented.
This article is taken from Landlord Today