Superdry prepares to publish restructuring plan, Sky News reports

Struggling British fashion chain Superdry is in the advanced stages of preparing a restructuring plan that is expected to launch in the coming days, the company said on Monday.

There is no certainty that the plan will be implemented, it added, without giving further details.

The announcement follows a Sky News report that said the fashion chain could put out a plan as soon as Tuesday that includes steep rent cuts at some of its 94 British stores.

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.

The London-listed company’s shares rose more than 8% following the report, but later reversed course to drop 5.8% by 1350 GMT.

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 have pressured its shares.
Superdry warned on profit in January and said it does not expect market conditions to improve in the near term after a tough Christmas season.

Last month the retailer said it had agreed a six-month extension and an up to 20 million pound ($24.9 million) increase to its secondary lending facility with Hilco Capital.