Superdry is gearing up for a quick four-week sale process if creditors reject CEO Julian Dunkerton’s restructuring plan.
If the plan is not accepted by creditors soon, the struggling retailer will start a fast-tracked M&A process, as reported by Sky News.
Under Superdry’s proposal, Dunkerton plans to inject £8m through an open offer for other shareholders or £10m via a placing accessible only to him.
The share sale will happen before the retailer gets delisted from the London Stock Exchange.
If the proposed restructuring is turned down by creditors, a document shared with them states that Superdry would launch a four-week sale process that might lead to a pre-pack administration deal.
Last month, it was reported that M&G, the landlord of Superdry’s flagship store on Oxford Street, was contemplating contesting the rescue plan, which aims to enforce significant rent reductions across 39 of its stores, including 15 at zero rent.
In response to the plan, the retailer mentioned it anticipates shutting down some stores in the UK and has identified 25 to 30 European-based stores for closure within the next year.
Superdry also revealed plans to transition to a new third-party e-commerce platform to replace its current system, stating it will “facilitate a reinvigorated and more efficient e-commerce strategy in the UK and internationally.”
Dunkerton emphasized the urgency of approving these proposals, stating, “The business is in a serious situation. It is crucial that these proposals are accepted, and the restructuring plan moves forward, allowing us to preserve jobs and offering the best outcome for all stakeholders.”
Image Source: Tang Yan Song @ShutterStock
