17th Jun 2024 16:04
(Alliance News) - Superdry PLC shares soared on Monday after a court approved its restructuring plan aimed at delivering "turnaround and future growth".
The stock was trading 17% higher at 7.60 pence in London on Monday afternoon. It has fallen 62% over the past 12 months.
The Cheltenham, England-based clothing retailer announced in April its decision to conduct an equity raise to provide liquidity headroom and resolve its ongoing cash problems.
The equity raise, to be conducted through a placing, is conditional upon the court sanctioning the restructuring plan. This will see Superdry undergo a reconstruction of its property estate and retail cost base, to reduce losses and property-related liabilities.
Superdry said in April that it expected the plan to include rent reductions at 39 UK sites, extend the maturity of loans with Bantry Bay Capital Ltd and Hilco Capital Ltd, and generate material cash savings from rent and business rate compromises over the last few years.
On Friday, shareholders endorsed the resolution to implement a GBP10.0 million placing for the equity raise at 5.00 pence per share, the other option under consideration being a GBP6.9 million open offer.
"The sanction of the restructuring plan by the court will enable the group to implement the capital and restructuring measures, which the group is undertaking in order to secure its long-term future and return to profitability," Superdry explained.
Chair Peter Sjolander commented: "This is an important moment for Superdry."
"My thanks and those of the entire board go to the shareholders and creditors of Superdry who have supported the proposals, which will enable the business to go forward with the right structure, balance sheet and cost base to deliver its turnaround and future growth."
By Emma Curzon, Alliance News reporter
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