Superdry PLC (LSE:SDRY) shares soared more than 127% today after it dodged insolvency through a £10 million lifeline from its founder Julian Dunkerton.
Back in April, the group warned it could go bust if it wasn't able to undergo vast restructuring including the reduction of rents with landlords.
Dunkerton is set to inject “a significant amount of his own money” as he underwrites a £10 million equity raise, all of which is part of the company's recovery plan.
Creditors such as lenders Hilco and Bantry Bay as well as landlords approved the plans earlier this week before shareholders voted on the move today.
Peter Sjӧlander, Superdry Chairman, said: “This is a crucial step towards delivering the restructuring of the business and ensuring that Superdry is in the best possible shape to complete its recovery and return to growth.”
Dunkerton added: "I recognise all stakeholders have made deep compromises to enable this turnaround, and I will be putting a significant amount of my own money behind this too, to ensure that the business continues to survive over the long term.
"With the court hearing next week, I continue to look forward to a positive future for Superdry."