Superdry’s landlords will bear the brunt of the fashion retailer’s painful restructuring as it prepares to outline a blueprint for survival with the backing of its founders.
Sky News understands Superdry is preparing to publish a formal restructuring plan as early as Tuesday that will see significant rent cuts at most of its 94 UK stores.
City sources said the chain was not expected to announce plans to permanently close any of its UK stores, although they noted that landlords have the option of terminating Superdry’s lease if they are unhappy with the terms of the deal.
They added that the size of the proposed rent cuts would depend on the financial performance of each store.
Meanwhile, Superdry’s suppliers are not expected to face swing clauses in the restructuring proposals.
One person warned that the start of the restructuring plan could be delayed by a day or two.
The Cheltenham-based company’s survival plan needs creditor approval after weeks of talks over a takeover by founder Julian Dunkerton collapsed.
Superdry said last month after privatization discussions concluded that it was still in talks with Mr Dunkerton “about alternative structures, including a possible equity raise fully underwritten by Julian Dunkerton, which would provide additional liquidity for the company’s turnaround plan.” space”.
“Any equity raise is expected to be at a significant discount to the current share price.”
Superdry’s share price has been under intense pressure in recent months as the scale of its financial challenges came to light.
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They were trading at around 8.95p on Monday, giving the debt-laden company a market capitalization of just under £9m.
The company, which recently agreed to increase its borrowing capacity with one of its existing lenders, Hilco Capital, also owes Bantry Bay tens of millions of pounds.
Mr Dunkerton, who returned to the company in 2019 after being ousted, owns nearly 30% of the shares.
Superdry has raised cash in recent months by selling its brands in regions including India and Asia-Pacific.
Late last year, the company blamed unseasonably mild fall weather for weak sales, sending its shares to a record low.
Superdry declined to comment.
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