Superdry Readying Emergency Sale Process – Report

According to a report by Sky News on Tuesday, Superdry (LON: SDRY) is readying an emergency four-week sale process if creditors stop its founder's plans to put up to £10 million of his own money into the fashion chain in an attempt to stave off insolvency.

Sky News reported that the accelerated M&A process would be launched if creditors do not approve a restructuring plan in the coming weeks.

In the suggested survival strategy, Julian Dunkerton, Superdry co-founder and CEO, would contribute either £8 million in an open offer accessible to other shareholders or £10 million in a placing exclusively available to him.

Sky said its sources stated that Dunkerton's readiness to invest a significant portion of his own funds into Superdry is a testament to his belief in the company's potential for a successful turnaround.

The share sale will happen before Superdry is delisted from the London Stock Exchange.

Sky stated that it understands the restructuring plan would require approval by creditors, including landlords, in the coming weeks.

They add that they have seen a document circulated to creditors recently that states the restructuring plan rejection would be followed by a four-week sale process for Superdry, with the likely outcome of a pre-pack administration deal.

In a report last month, the media outlet said asset manager M&G, which owns Superdry's flagship store in central London, was assessing a challenge to its rescue plan. The asset manager is said to have been

alarmed by the absence of its participation in a process that allows creditors to benefit from any future recovery in the retailer.

While the restructuring plan would not see any immediate shop closures, it will impose large rent cuts on landlords of dozens of Superdry outlets. In addition, Sky said its sources noted that the company is also planning to pull out of a number of overseas markets, including the US.