Cheltenham-based Superdry has today (April 16) launched a major restructuring plan in a last-ditch bid for survival.

The fashion retailer has been exploring various cost saving options as part of a broader turnaround plan for some time.

The plan announced today includes seeking rent reductions at 39 of its UK stores. It will also involve cutting the business rates liabilities owed to local authorities.

Without the restructuring plan, Superdry believes it will need to enter administration.

This would leave suppliers, like the landlords affected by the restructuring plan, worse off than they would be under the plan.

Superdry has also announced its intention to delist from the London Stock Exchange, which will allow it to benefit from significant cost savings associated with being listed and implement its turnaround plan away from the heightened exposure of public markets.

The restructuring plan is a key part of Superdry's turnaround plan to help it deliver its new, more financially sustainable, target operating model.

To support its transition to the new operating model over the coming years, Superdry is today also announcing an equity raise. The equity raise is fully supported and underwritten by Julian Dunkerton, Superdry's CEO and co-founder.

The restructuring plan is conditional on the company receiving the proceeds of the equity raise to help ensure it has the necessary liquidity headroom to deliver its turnaround plan.

Superdry has consulted lenders, Bantry Bay and Hilco, who have consented to the launch of the restructuring plan and remain supportive of the company.

The launch of the restructuring plan is not expected to affect Superdry operations, staff or suppliers, with the exception of local authorities and landlords.

Peter Sjӧlander, Superdry chairman, said: "The board has spent a lot of time engaging with Julian Dunkerton to come up with a plan which gives the business the best possible prospects for the long term, while protecting the interests of shareholders and other stakeholders to the greatest extent possible.

"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. We believe that the proposed restructuring plan, combined with the equity raise fully supported and underwritten by Julian, is the best way to achieve this, together with a delisting which would further reduce costs and enable the business to progress the turnaround."

Julian Dunkerton, Superdry CEO and co-founder, said: "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.

"My decision to underwrite this equity raise demonstrates my continued commitment to Superdry, its stakeholders, its suppliers and the people who work for it. My passion for this great British brand remains as strong today as it was when I founded the business."

Julian Dunkerton holds approximately 26.36% of Superdry's shares.

The process to implement the restructuring plan is expected to complete in June 2024, with the plan itself set to last for three years. Delisting from the London Stock Exchange is expected to take place in July.