(Reuters) – British fashion chain Superdry announced a three-year restructuring plan on Tuesday and said a fundraising round backed by its CEO and co-founder Julian Dunkerton would allow the company to delist from the London Stock Exchange .
The maker of jackets and clothing inspired by vintage American styles and Japanese graphics has been facing weak demand and a cash crunch.
Superdry shares fell more than 25% on Tuesday after seeing their trading briefly suspended and were trading at a historic low.
The company said trading conditions remained challenging.
Superdry’s restructuring plan would result in significant cash flow savings through the reduction of rents in some of its stores and the extension of the maturity of loans provided under the group’s credit facility agreements, a the company said.
A fundraising, fully underwritten by Julian Dunkerton, consists of two options – an open offer to raise the sterling equivalent of €8 million, or a placement to raise gross proceeds of £10 million.
The restructuring plan depends on the success of the fundraising, which must be approved by shareholders. Superdry has warned it would have to go into administration if the plan is not implemented.
Julian Dunkerton, who is also the company’s largest shareholder, said last month that he would not make a bid for shares in the company that he does not already own.
(Reporting by Eva Mathews and Anchal Rana in Bangalore; Dimitri Rhodes, editing by Blandine Hénault)
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