(Reuters) -British fashion chain Superdry announced a three-year restructuring plan on Tuesday and said a fund raising backed by its CEO and co-founder Julian Dunkerton would allow the company to delist from the London Stock Exchange.
The maker of jackets and clothing inspired by American vintage styles and Japanese graphics has been struggling with weak demand and a cash crunch.
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 5.33 pence.
Superdry’s restructuring plan 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, it said.
The company said trading conditions remain challenging.
An equity raise, fully underwritten by Dunkerton, consists of two options – an open offer to raise the sterling-equivalent of 8 million euros ($8.49 million), or a placing to raise gross proceeds of 10 million pounds.
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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.
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.
($1 = 0.9427 euros)
($1 = 0.8050 pounds)
(Reporting by Eva Mathews and Anchal Rana in Bengaluru; Editing by Subhranshu Sahu, Kirsten Donovan)
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