A major plan to get Cheltenham fashion brand Superdry 'back on track' is moving ahead, following approval from company shareholders and its official sanction by the UK High Court.
The company announced in April 2024 that it was looking to undergo a massive restructure amid a period of widening losses and falling sales, with reported losses in the year to April 2023 amounting to £148 million.
The plan includes taking cost-saving measures such as rent reductions at 39 UK stores and delisting from the London Stock Exchange, as well as an equity raise — raising capital through the sale of new shares — of £10 million, underwritten by CEO and co-founder, Julian Dunkerton.
At its general meeting on Friday 14 June 2024, all proposed resolutions were approved by company shareholders, while the plan was also legally sanctioned at a UK High Court hearing on Monday 17 June 2024.
It means the resolutions, including the injection of capital and implementation of 'a clear target operating model', can now move forward, which the company says is 'critical' to securing the long-term future of the brand.
The company, founded in 2003, has attributed its recent struggles to multiple factors including the cost of living crisis and unseasonable weather last summer affecting sales.
Superdry chairman, Peter Sjӧlander, said: 'This is an important moment for Superdry. My thanks and those of the entire board go to the shareholders and creditors of Superdry who have supported the proposals, which will enable the business to go forward with the right structure, balance sheet and cost base to deliver its turnaround and future growth.'
Julian Dunkerton added: 'I am very pleased that our creditors and shareholders have voted overwhelmingly in favour of backing our restructuring plans, including the delisting and equity raise.
'I would like to thank them for their support. I am acutely aware that Superdry's turnaround plan requires compromises on their part and appreciate them taking the time to engage with the process and listen to our proposals to get the business back on track.'
