SUPERDRY WILL DELIST FROM THE LONDON STOCK EXCHANGE

The struggling fashion firm has announced a range of cost-cutting measures
Celebrity fans of the brand include David Beckham and Sir Lewis Hamilton

Troubled fashion firm Superdry is delisting from the London Stock Exchange in a bid to avoid plunging into administration.

The firm, once one of the Noughties' coolest brands. has launched a restructuring plan in desperate efforts to salvage its future on the UK's high streets.

The retailer is known for its hoodie tops and T-shirts, with celebrity fans including ex-England football captain David Beckham and Formula 1 driver Sir Lewis Hamilton.

It has also lavished money on celebrity tie-ups including with Beckham's son Brooklyn and Brazilian football superstar Neymar.

The company has now warned it faces going into administration if not for the new overhaul - as it announced a string of cost-cutting measures, including reducing the rents on 39 of its UK sites and extending the maturity date of large loans.

Superdry also wants to return to sales growth through measures such as improving product ranges and reallocating marketing spend.

The fashion business, which runs 216 shops as well as franchised stores, has been looking at how to cut costs after a year of weakening sales and deepening losses.

It has been looking to raise up to £10million through an equity raise, meaning the sale of new shares, to support its restructuring plans.

Superdry today said it wanted to delist its shares from the London markets as part of the restructure, which needed to be implemented 'away from the heightened exposure of public markets'.

The business needs shareholders to approve the move at its general meeting before it can apply to cancel its listing.

Shares tumbled by more than 30 per cent in early trading today.

Co-founder and chief executive Julian Dunkerton 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.'

Superdry's chairman Peter Sjolander said: '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.

'While we recognise the compromises we are asking from some of our stakeholder groups, we would urge them to support the proposals which we believe are the best way of ensuring Superdry's recovery over the long term.'

The business, which employs about 3,350 people across the world, runs 216 shops alongside franchised stores.

Superdry said earlier this year it was looking at 'cost-saving options' after reports it was considering a restructure - potentially involving store closures and job cuts.

Days later, the company confirmed that Mr Dunkerton, who co-founded Superdry in 2003, was in talks over a possible takeover deal.

The CEO, who owns over a quarter of the business, has also reportedly held initial talks with investment firms Rcapital and Gordon Brothers.

Share prices in the company have plunged from more than 500p to just over 5p.

Another of the firm's co-founders James Holder was banned from the roads after admitting drink-driving last August.

Holder, 51, was twice the alcohol limit while driving on July 28 when he was stopped in his Range Rover by police in Broadway, Worcestershire.

Cheltenham Magistrates' Court heard that a roadside breath test recorded a reading of 72mg of alcohol in 100ml of breath, over double the legal limit of 35mg.

Holder, who quit Superdry in 2016, was banned from driving for 18 months, fined £1,800 and told to pay £85 prosecution costs and a victim surcharge of £720.

Experts have suggested the firm has struggled to appeal to younger shoppers despite linking up with with influencers and ramping up social media engagement.

As well as the Brooklyn Beckham and Neymar partnerships, guests at high-profile Superdry launches have attracted stars such as pop singer Pixie Lott.

But in the six months to the end of last October, sales across the business - which began as a market stall in Cheltenham - fell by 23.5 per cent to £220million.

Peter Williams, a former chairman of Superdry, told BBC Radio 4's Today programme the brand was now 'probably not as cool as it used to be'.

He added: 'That's the problem because teenagers don't necessarily want to shop where their parents used to shop and there is this natural culling of fashion brands that goes on.'

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

The firm's clothing is inspired by American vintage styles and Japanese graphics.

Reports earlier this year suggested Superdry was in talks with New York investment management firm Davidson Kempner over a deal to take the brand private.

Superdry has also been involved in an alleged copyright infringement row with Premier League leaders Manchester City, suggesting the club's training kit advertising Japanese brewer Asahi looked too similar to the clothing chain's logo.

2024-04-16T10:52:06Z dg43tfdfdgfd