Superdry restructuring plan gets creditor thumbs-up

A relieved Superdry announced in a stock exchange release on Tuesday that it had got overwhelming approval from creditors for its plan that will see it implementing a restructuring of its UK property estate and retail cost base.

It said it was “pleased to announce that there was a high level of turnout at the Plan Meetings and 99% by value of the Plan Creditors which attended the Plan Meetings (in person or by proxy) voted in favour of the measures proposed in the Restructuring Plan”. That’s an undeniably powerful vote of support.

As well as the store restructuring, the plan includes an equity fundraising and a delisting from the London Stock Exchange, making Superdry a privately-held company once again.

Given that all the measures in the plan are dependent on each other, the company needed approval for each proposal put forward at the meetings where creditors voted on Monday.

Not that it’s all signed, sealed and delivered as shareholders now also have to vote on the equity raise, the delisting, and other measures. Their meeting will happen on Friday and if further approval is gained, the High Court will be asked to sanction the Restructuring Plan at a hearing to start on 17 June 2024.

The company added that the measures “are needed” to avoid it “entering into insolvency, and will allow Superdry to return to a more stable footing, accelerate its turnaround plan and drive it towards a viable and sustainable future”.

It should be able to do that with much lower rents on a chunk of its stores, as well as some new funding underwritten by co-founder and CEO Julian Dunkerton and away from the glare of the stock exchange.