Creditors at struggling Superdry back rescue plan

Creditors of struggling Superdry have agreed to its proposed restructuring plan.

The beleaguered Cheltenham retailer has released a statement which says its creditors have voted in favour of its proposed restructuring plan,

Superdry said: ”The company is pleased to announce that there was a high level of turnout at the plan meetings and 99% by value of the plan creditors which attended the plan meetings (in person or by proxy) voted in favour of the measures proposed in the restructuring plan.”

The  plan includes steep rent reductions across its stores, closures of branches, an equity raise personally backed by founder Julian Dunkerton and a delisting from the London Stock Exchange.

The company has been hit by large debts and falling sales and is facing the prospect of being placed into administration,

Superdry said that each element of the plan is “inter-conditional upon the others”. Shareholders will vote this week on whether to press ahead with the restructuring plans.

The fashion retailer said that each element is part of a “key package of measures that are needed” to avoid the company entering into insolvency.

Superdry reported a nearly one-quarter drop in revenue in January and a widening of its adjusted loss.

Specialist advisers were called in to draw up the rescue plan earlier this year.

Earlier this week it was revealed the retailer had parted company with its chief commercial officer Craig McGregor who joined the firm four years ago.

Teneo senior managing director Gavin Maher said: “Having 99% of those creditors that voted being in favour means that the plan company has achieved an important milestone in securing creditor support for the restructuring plan.”