Superdry has said it wants to delist from the London Stock Exchange, as the troubled fashion chain launched a restructuring plan in its latest efforts to salvage its future on the UK’s high streets.
The company warned it would be forced to enter into administration if it did not go ahead with the plans.
It announced a string of cost-cutting measures, including reducing the rents on 39 of its UK sites and extending the maturity date of large loans.
It also wants to return to sales growth through measures such as improving its product ranges and reallocating marketing spend, while it is also expecting conditions for households to improve.
The fashion business, which runs 216 shops as well as franchised stores, has been looking at various ways to cut costs after a year of weakening sales and deepening losses.
It is looking to raise up to £10 million through an equity raise, meaning the sale of new shares, to support its restructuring plans.
This will be backed and insured by Superdry’s co-founder and chief executive Julian Dunkerton, who assured his “passion for this great British brand remains as strong today as it was when I founded the business”.
Superdry said it wants to delist its shares from the London markets as a result of the plans, which need to be implemented “away from the heightened exposure of public markets”.
Delisting will also help it make cost savings, it said.
The business needs shareholders to approve the move at its general meeting before it can apply to cancel its listing. Shares tumbled by more than 30% in early trading on Tuesday.
Mr Dunkerton added: “Today’s announcement marks a critical moment in Superdry’s history.
“At its heart, these proposals are putting the business on the right footing to secure its long-term future following a period of unprecedented challenges.
“I am aware of the implications for all our stakeholders and I have sought to protect their interests as much as possible in the proposals we are announcing today.”
Superdry’s chairman Peter Sjolander said: “The business has faced extraordinary external challenges and, while good progress has been made on our cost-saving initiatives, more needs to be done to get the business on a stable financial footing for the future.
“While we recognise the compromises we are asking from some of our stakeholder groups, we would urge them to support the proposals which we believe are the best way of ensuring Superdry’s recovery over the long term.”