SHARES in Superdry closed down 23.75 per cent yesterday following news it would exit the London Stock Exchange as part of a radical restructuring plan to keep the company afloat.

The popular noughties clothing brand said on Tuesday that cutting rents on 39 of its stores, raising more funds and leaving the stock market would help bring the business back to life after a torrid few years.

Its turnaround plan, to be carried out over three years, will see founder Julian Dunkerton funding an equity raise of up to £10m.

The chief exec said the "announcement marks a critical moment in Superdry's history. At its heart, these proposals are putting the business on the right footing to secure its long-term future following a period of unprecedented challenges. I am aware of the implications for all our stakeholders and I have sought to protect their interests as much as possible in the proposals we are announcing today."

He added: "My decision to underwrite this equity raise demonstrates my continued commitment to Superdry, its stakeholders, its suppliers and the people who work for it. My passion for this great British brand remains as strong today as it was when I founded the business."

The businessman, who has a 26 per cent stake in the company, had previously been in talks with a US private equity firm about a rescue deal.

Superdry has been struggling to keep its head above water for months, launching a number of schemes to shore up extra costs.

Back in October, it signed a joint venture with Reliance Brands Holding UK Ltd (RBUK) for the sale of its intellectual property in South Asia, in its latest bid to boost funds.

Peter Sjolander, Superdry chair, said: "We believe that the proposed restructuring plan, combined with the equity raise fully supported and underwritten by Julian, is the best way to achieve this, together with a delisting which would further reduce costs and enable the business to progress the turnaround."

(c) 2024 City A.M., source Newspaper