Fashion retailer Superdry to go private as part of restructuring plan 

The maker of jackets and clothing inspired by American vintage styles and Japanese graphics has been struggling with weak demand and a cash crunch.

Fashion retailer Superdry has announced plans to delist from the London Stock Exchange amid a larger restructuring plan as trading conditions remain challenging.

The maker of jackets and clothing inspired by American vintage styles and Japanese graphics has been struggling with weak demand and a cash crunch.

The company said that the three-year restructuring plan, announced today, would result in material cash savings from rent reductions at some of its stores, and extend the maturity of loans made under the group's debt facility agreements.

The company is expecting trading conditions to remain difficult.

In addition, Superdry announced a new fundraising effort backed by its chief executive and co-founder Julian Dunkerton.

An equity raise, fully underwritten by Mr Dunkerton, consists of two options - an open offer to raise the sterling-equivalent of €8m, or a placing to raise gross proceeds of £10m.

The restructuring plan is dependent on the successful completion of the equity raise, which requires shareholder approval. Superdry said that it would have to enter administration if the plan was not implemented.

Trading in the company's shares was briefly halted after a sharp fall early on Tuesday. They were last down by a third to a new low of 5.33p.

Mr Dunkerton, who is also the company's top shareholder, last month said he will not be making an offer for the shares of the company that he already does not own.

Reuters