Troubled Superdry to launch steep rent cuts in latest efforts to stay afloat
Embattled Superdry will publish a restructuring plan over the coming days which will entail steep rent cuts across a large number of its 94 stores.
Embattled Superdry will publish a restructuring plan over the coming days which will entail steep rent cuts across a large number of its 94 stores.
Sources told Sky News City editor Mark Kleinman, who was the first to report on the development, that the retailer was not to announce any closures across its estate but said landlords would have the option to end their lease if they were not happy with the terms of the deal.
“The scale of the proposed rent cuts will be determined by each store’s financial performance,” the source said.
On Monday afternoon, Superdry said it is in the “advanced stages of preparing a restructuring plan, which is expected to launch in the coming days”.
“However, there is no certainty that such a restructuring plan will be implemented,” it said.
Shares in the firm have tanked 13 per cent following the report.
Its survival bid, which will require approval of its creditors, comes weeks after founder Julian Dunkerton failed to find the backing to take the company private.
The British businessman, who has a 26 per cent stake in the company, had been in talks with a US private equity firm about a potential rescue deal.
The board said discussions with Dunkerton remain ongoing regarding alternative structures, including a possible equity raise fully underwritten by the boss.
“A further announcement will be made as appropriate. There can be no certainty that a transaction with Julian Dunkerton will be agreed,” it said last month.
Superdry has been struggling to keep its head above water for months, launching a number of schemes to shore up extra costs.
Back in October, it signed a joint venture with Reliance Brands Holding UK Ltd (RBUK) for the sale of its intellectual property in South Asia, in its latest bid to boost funds.
It mirrored an agreement announced by Superdry in March to sell the intellectual property of its Asia Pacific offering to South Korean retail group Cowell Fashion Company for $50m (£40m).
