By In a bid to secure its future, Superdry, the fashion retailer, is gearing up to unveil a restructuring plan that will place significant pressure on its landlords. The plan, expected to be announced as early as Tuesday, will involve substantial rent reductions for many of its 94 British stores.
While Superdry is not anticipated to announce permanent store closures in the UK, landlords will have the option to terminate leases if they find the terms unfavorable. The extent of rent cuts will be determined based on each store’s financial performance, with the goal of aligning costs with revenue.
Fortunately for Superdry’s suppliers, the restructuring plan is not expected to impose drastic measures on them. However, the formal announcement of the plan may face a slight delay of a day or two.
The move comes after failed takeover talks with Julian Dunkerton, Superdry’s founder, leaving the company to pursue alternative avenues for survival. Discussions with Dunkerton may lead to an equity raise, which would be underwritten by him and could offer additional liquidity to support the company’s turnaround efforts.
Shares in Superdry have experienced significant downward pressure amid financial difficulties, with the company’s market capitalization currently below £9 million. Despite these challenges, Superdry has secured increased borrowing capacity from existing lenders and continues to explore options to address its indebtedness.
As Superdry navigates these turbulent waters, its founder’s involvement and ongoing efforts to streamline operations and optimize liquidity will be crucial in charting a path toward stability and growth.
