Superdry creditors vote for restructure as chain fights to survive

Creditors of troubled Gloucestershire fashion chain Superdry have overwhelmingly voted in favour of a major restructure. The Cheltenham-headquartered company said on Tuesday (June 11) that 99 per cent of those who turned out for the vote gave the proposal the green light.

The restructure is part of a package of measures announced in April that includes a £10m equity raise underwritten by founder Julian Dunkerton and delisting from the stock market. It is hoped the plan, which needs to be approved by investors, will stave off administration.

Each part of the proposal is inter-conditional upon the others, meaning each step needs approval. Superdry said its plan it will make “material cash savings” over a three-year period.

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If the resolutions are passed, Superdry will ask the High Court to sanction its restructuring plan at a hearing to that will begin on June 17, it said.

Gavin Maher, senior managing director at Teneo, said: “Having 99% of those creditors that voted being in favour means that the plan company has achieved an important milestone in securing creditor support for the restructuring plan.”

The troubled business said its proposals would allow it to return to a “more stable footing”, accelerate its turnaround plan and drive it towards a “viable and sustainable future”.

It has been a difficult few months for the Gloucestershire-founded retailer. In March, Superdry came to an agreement with lender Hilco to extend its debt facility up to £20m. The agreement is conditional on Hilco being satisfied sufficient progress is being made in relation to the implementation of cost savings measures, including the restructuring plan.

Superdry reported a nearly one-quarter drop in revenue in January and a widening of its adjusted loss.