Superdry is preparing to run an emergency four-week sale process if creditors block its founder’s plans to inject up to £10m of his own money into the fashion chain in a bid to stave off insolvency.
Sky News has learnt that the accelerated M&A process would be launched if a restructuring plan is not approved by creditors in the coming weeks.
Under the proposed survival plan, Julian Dunkerton would stump up either £8m in an open offer available to other shareholders or £10m in a placing that would only be accessible to him.
The share sale would precede Superdry’s delisting from the London Stock Exchange.
The restructuring plan would need to be approved by creditors including landlords in the coming weeks.
According to a document circulated to creditors in recent days and seen by Sky News, rejection of the restructuring plan would be followed by a four-week sale process for Superdry, with the likely outcome a pre-pack administration deal.
Sources said that Mr Dunkerton’s willingness to inject such a substantial chunk of his own fortune into the company reflected his confidence in the company’s turnaround prospects.
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Superdry’s shares have slumped to a series of record lows in recent months amid dire trading and a failed sale process.
Last month, Sky News revealed that M&G, the asset manager which owns Superdry’s flagship store in central London was weighing a challenge to its rescue plan.
M&G is believed to have been alarmed by the absence of their participation in a mechanism to allow creditors to benefit from any future recovery in the retailer’s performance.
The restructuring plan will not entail immediate shop closures but will impose sizeable rent cuts on landlords of dozens of Superdry outlets.
Sources said it was also planning to pull out of a number of overseas markets, including the US.
On Tuesday morning, shares in the company were trading at around 6.7p, giving the indebted company a market capitalisation of less than £7m.
It recently agreed increased borrowing capacity with Hilco Capital, one of its existing lenders, while it also owes tens of millions of pounds to Bantry Bay.
Mr Dunkerton, who in 2019 returned to the company having previously been ousted, owns just under 30% of the shares.
In recent months, Superdry has raised cash by offloading its brand in regions including India and Asia-Pacific.
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Superdry declined to comment.
