Fashion retailer on austerity course
Superdry announces withdrawal from stock market
April 16, 2024, 11:00 a.m
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The British clothing brand Superdry reported deep red figures in its last financial year. The future is shaky. The fashion brand wants to restructure and take cost-cutting measures: one of which is withdrawing from the stock market.
The ailing British fashion retailer Superdry wants to save money and get back on track by restructuring and delisting from the London Stock Exchange. The restructuring plan agreed with creditors would essentially provide for longer loan terms and lower rents for some of the branches, the company said.
In addition, a capital increase is planned, which will be fully subscribed by company founder and CEO Julian Dunkerton with the aim of initiating the delisting. Superdry could save “significant” costs associated with listing on the stock market. Shares in Superdry fell almost 34 percent in early trading in London. Compared to the previous year, the shares have fallen by 94 percent.
A restructuring plan is a formal procedure under the Companies Act 2006 for companies in financial difficulty. It allows companies to reach a compromise with creditors on their debts in order to continue trading and rehabilitate themselves. At the end of January, Superdry announced that it was exploring various savings options due to weak demand and a liquidity bottleneck.
Co-founder Dunkerton tried to take over the ailing brand completely himself in February – he holds 26 percent of the company. He was in talks with potential financiers about buying the remaining shares, but ultimately had to abandon the plan.
In the financial year that ended at the end of April (2022), Superdry made a net loss of 148.1 million pounds (166 million euros) – in the same period last year there was a profit of 22.4 million pounds. There are no figures yet for the 2023 financial year.
The fashion retailer is suffering from mounting losses as sales fall, leaving the company’s market value at less than £8m. Superdry employs more than 3,000 people worldwide, supporting 200 stores and 350 franchisees and licensees.