Superdry PLC (LSE:SDRY) has announced a restructuring plan that will see the British clothing company delist from the London Stock Exchange.
Shares in the group have tanked this year, with sales falling and losses piling higher after a disappointing Christmas trading season.
Superdry has therefore decided to launch an equity raise that “will provide necessary liquidity headroom” and a subsequent delisting “which will allow the company to benefit from significant cost savings associated with being listed and implement its turnaround plan away from the heightened exposure of public markets”.
Co-founder and chief executive Julian Dunkerton is underwriting the equity raise and debt facility agreements with Bantry Bay and Hilco will be extended
As part of the restructuring plan, “rent reductions” are planned for 39 Superdry sites.
Superdry said: “Together, the restructuring plan, equity raise and delisting constitute a key package of measures that are needed to allow Superdry to return to a more stable footing, accelerate its turnaround plan and drive it towards a viable and sustainable future.
“Therefore, each element of this package will be inter-conditional upon the others, such that the package as a whole requires each of the restructuring plan, equity raise and delisting to be approved.”
Existing shareholders will vote on two potential equity rounds- one an open offer to raise €8 million (£6.8 million) and the other a £10 million placing.
The stock is currently down 76% year to date.