UK's Superdry prepares to publish restructuring plan, Sky News reports (updated)
15/04/2024 14:53
(Adds details from report in paragraph 2, share movement in
paragraph 4, and background in paragraphs 5-7)
April 15 (Reuters) - Struggling British fashion chain
Superdry SDRY.L is preparing to put out a formal restructuring
plan as soon as Tuesday that includes steep rent cuts at some of
its 94 British stores, Sky News reported on Monday.
The scale of the proposed rent cuts will be determined by
each store's financial performance, and landlords would have the
option of terminating leases if they were dissatisfied with the
terms of the deal, Sky News added.
Superdry declined to respond to Reuters request for a
comment on the report.
The London-listed company's shares were up 8.3% to 9.21
pence at 1330 GMT, although they are down over 73% so far this
year.
The report comes weeks after CEO and top shareholder Julian
Dunkerton said he will not be making an offer for the company.
The maker of jackets and clothing inspired by American
vintage styles and Japanese graphics, has been struggling due to
tough consumer retail market conditions and weak wholesale
orders that has pressured its shares and prompted it to work on
a turnaround plan.
Superdry warned on profit in January and said that it does
not expect market conditions to improve in the near term after a
tough Christmas season.
Last month, the retailer said it agreed to an extension of
six months and an increase of up to 20 million pounds to its
secondary lending facility with Hilco Capital.
(Reporting by Eva Mathews in Bengaluru; Editing by Shinjini
Ganguli)
((Eva.Mathews@thomsonreuters.com;))