Superdry, the popular fashion retailer known for its trendy coats and hoodies, has announced a major restructuring plan that includes delisting from the London Stock Exchange. The company’s chief executive and co-founder, Julian Dunkerton, described the move as a “critical moment” in Superdry’s history, stating that the company would be forced to enter administration if the plans did not go ahead.
In addition to delisting, Superdry is looking to raise up to £10m through an equity raise and implement cost-cutting measures over the next three years. The company aims to reduce rents on some of its UK sites, extend the due date of large loans, improve product ranges, and reallocate marketing spend to boost sales.
Despite efforts to appeal to younger shoppers through influencer partnerships and social media marketing on platforms like Instagram and TikTok, Superdry has seen its share price plummet from over 500p to just over 5p. The company has faced weakening sales and deepening losses, prompting the need for a strategic overhaul.
Mr. Dunkerton expressed confidence that the proposed measures would put Superdry on the right path to secure its long-term future after facing unprecedented challenges. The retailer, which started as a market stall in Cheltenham, was founded by Mr. Dunkerton and James Holder and enjoyed significant commercial success in the past.
Delisting from the London Stock Exchange will allow Superdry to carry out the restructuring away from the public markets’ heightened exposure and save cash. Shareholders will need to approve the plan at the next general meeting, with the company aiming to complete the delisting by July 2024.
