Fashion retailer Superdry has confirmed its plans to delist from the London Stock Exchange as part of a major restructuring effort. The company’s founder and CEO, Julian Dunkerton, has stated that this marks a “critical moment” in the firm’s history. The restructuring will raise up to £10m through the sale of new shares, alongside a range of other measures aimed at cutting costs over the next three years.
Reports suggest that Superdry’s recent struggles with weak sales and deepening losses could be the result of a failed attempt to appeal to younger customers. Despite partnering with influencers and stepping up its social media marketing efforts, the business has seen its share price fall from more than 500p to a little over 5p.
Mr. Dunkerton stated that the proposed measures would give the company “the right footing again to secure its long-term future following a period of unprecedented challenges”. Superdry plans to reduce rents on 39 of its UK sites, extend the repayment due dates on large loans, reallocate its marketing spend, and improve its product ranges with the intention of boosting sales.
Superdry originally started as a market stall in Cheltenham but has since grown into an enterprise consisting of 216 shops alongside several franchised outlets. The firm has been looking at multiple ways to reduce costs after experiencing weakened sales and deepening losses over the past year.
Delisting from the London Stock Exchange will provide Superdry with a strong opportunity to direct its restructuring away from the “heightened exposure of public markets,” said a company spokesperson. Delisting also means the business will be capable of saving cash, with the company intending to complete the move by July 2024, according to a provisional timetable
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