Iconic high street fashion brand issues major update on future including administration risk
AN ICONIC high street fashion brand has issued a major update on its future, including the risk of falling into administration.
Superdry plans to delist from the London Stock Exchange as the troubled fashion chain launched a restructuring plan and an equity raise.
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It said it would be forced to enter into administration if it did not go ahead with the plans.
The company is looking to raise up to £10 million through an equity raise, which means selling new shares.
This will be fully insured by its founder and chief executive, Julian Dunkerton.
Superdry said it wants to delist from the London markets as a result of the plans, which need to be implemented “away from the heightened exposure of public markets”.
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Mr Dunkerton said the proposals mean “putting the business on the right footing to secure its long-term future following a period of unprecedented challenges”.
The plan also includes initiating steep rent cuts on 39 UK landlords of to help secure its foothold on the high street.
However, it’s important to confirm that stores could still close in the future.
There’s no guarantee that landlords will agree to proposed rent cuts.
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If they choose not to, they are well within their own right to terminate Superdry’s leases – a move which would result in store closures.