The reorganisation plan of Superdry has been overwhelmingly approved by its creditors, and now only the shareholders need to approve it. The plan, which attempts to prevent the fashion retailer from going out of business, was approved by about 99 per cent of creditors by value.
Teneo senior managing director Gavin Maher said, “Having 99 per cent of those creditors that voted being in favour means that the plan company has achieved an important milestone in securing creditor support for the restructuring plan.”
The retailer’s ambitions for a comeback are centred on getting 39 UK outlets to reduce their rent, raising money for equity that is backed by founder Julian Dunkerton, and delisting from the stock market. Under the Companies Act, reorganisation is a required process for businesses experiencing financial difficulties.
According to Superdry, every component of the package is dependent on the others, requiring approval at each stage of the proposals.
The idea is Dunkerton’s most recent attempt at taking a chance after a potential take-private agreement collapsed earlier this year. It does not call for any retail closures. Over the course of its three-year restructuring plan, it will produce “material cash savings from rent and business rate compromises.”