By City A.M. Reporter
Superdry has avoided insolvency after shareholders voted to approve a £10m lifeline today.
Following a general meeting, the company said that the £10m equity raise, which is underwritten by chief executive Julian Dunkerton, “provides greater comfort that the company will have sufficient liquidity headroom to implement its turnaround plan”.
The company, which has over 90 stores in the UK, warned in April that it could go bust unless it radically restructured the business, announcing that it would delist from the London Stock Exchange.
Peter Sjӧlander, Superdry’s chairman, said: “I am pleased that our shareholders have supported the proposed equity raise and would like to thank those shareholders who voted in favour of the proposals before them today.
“This is a crucial step towards delivering the restructuring of the business and ensuring that Superdry is in the best possible shape to complete its recovery and return to growth.”
The retailer listed in London in 2010 in an initial public offering valuing the retailer at £400m. But the company struggled in recent years with consistently declining sales. In January it reported that year-on-year group revenue fell 23.5 per cent to £219.8m.
Its share price has fallen 70 per cent over the last year.
