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Some 20 years ago, the British clothing chain Superdry caused a furor with its combination of vintage designs and Japanese letter chains. Today, the magic seems to be wearing off. Founder-CEO Julian Dunkerton is delisting his company in an ultimate attempt to save the faded glory from destruction.

In the news: Superdry announces its intention to exit the London Stock Exchange, giving the stock another heavy blow. The share price, meanwhile, is down a sloppy 94 percent from a year ago.

More details:

  • The stock market exit should take the company out of the spotlight of investors so that it can implement a restructuring plan in relative peace. That is focused mainly on cost savings in the United Kingdom. Superdry has more than 3,000 employees worldwide.
  • There will also be a capital increase. Dunkerton, which currently owns 26 percent of the capital, is declaring its willingness to pump up to 10 million pounds of fresh capital into the company, but is also keeping open the option of bringing other investors on board.

The gist: Superdry is piling up losses due to disappointing sales. Without the capital increase, the company can no longer meet its obligations, which would bring bankruptcy closer. Lenders Hilco Capital and Bantry Bay Capital have agreed to the restructuring plan, which will put the company "on the right path to secure its long-term future after a period of unprecedented challenges," Dunkerton said in an announcement.

Out of fashion

Zoomed in: Why can't Superdry appeal to younger generations?

  • One explanation that Dunkerton himself pointed out earlier is its overly faded offerings, which neglected its original focus on hoodies and jackets.
  • According to some retail specialists, one of the problems is the very emphatic lettering of the brand on each of its garments. That would put off some customers.
  • What may also be a factor is that more and more players are setting their sights on the intersection of sportswear and fashion, Superdry's home turf. As a result, the brand has to compete against both sports giants like Nike or Adidas and fashion chains like Zara.
  • Superdry is also by no means the only fashion brand in trouble. Just last week, Esprit also announced a restructuring operation.

👉 "Teenagers don't necessarily want to shop where their parents do," Peter Williams, the former chairman of Superdry, summed it up to the BBC.

© The Content Exchange, source News