Make or break for Superdry as it hopes for £10m lifeline

Superdry faces a make-or-break week, which could see it slide into administration unless shareholders back its emergency fundraising plans.

On Friday, Superdry will announce whether shareholders are prepared to give it up to £10million to fund its turnaround plan. Under pressure Superdry plans to quit the London Stock Exchange after 14 years to cut its costs, close stores and slash rent payments and extend repayment dates on its debts.

The beleaguered fashion retailer warns that if investors do not back the fundraising it will have to enter into administration or “an equivalent insolvency process immediately”, resulting in shareholders losing all their investment in the company.

Should shareholders back its fund raising, then the following week Superdry will apply for court permission for its restructuring plan. Assuming it gets sign off from the courts, it will delist from the LSE and complete its fundraising by mid-July. Superdry says its restructuring, fundraising and delisting are interconnected and if one part is not approved or completed in time, it will need to enter administration.

When Superdry floated in early 2010 it was valued at 500p per share or £395million. They peaked at £20.22 each in January 2018 before going into free fall as its trading deteriorated, a situation that was made worse by the pandemic. The shares are currently worth 3.3p.