London-based fashion chain Superdry has received a lifeline as its flagship store’s owner has withdrawn its challenge to the company’s rescue plan. According to reliable sources, asset manager M&G had considered formally objecting to Superdry’s restructuring plan, but has now decided against it.
M&G, which owns Superdry’s store on Oxford Street, had sought legal advice from City law firm Hogan Lovells to review the proposed plan. However, it has now chosen not to proceed with any formal actions. City insiders also revealed that British Land, which owns a small number of Superdry outlets, will not challenge the restructuring plan but will also abstain from voting on it.
The rescue deal, which involves significant rent reductions for several landlords, will not result in any store closures in the UK. It will also be accompanied by a substantial funding injection from the company’s founder, Julian Dunkerton. However, property groups were reportedly concerned about their exclusion from a mechanism that would allow them to benefit from any future improvement in Superdry’s performance.
In a statement, a spokesperson for Superdry stated that they are actively engaging with their landlords regarding the proposed Restructuring Plan, which is crucial for the company’s future. The struggling fashion chain’s shares were trading at a mere 4.45p in London, giving it a market capitalisation of less than £40m. If the restructuring plan is successful, Superdry’s shares will be delisted.
Both M&G and British Land declined to comment on the matter. The news of M&G’s withdrawal and British Land’s decision not to challenge the rescue plan comes as a relief for Superdry, which has been struggling to stay afloat amidst the challenging retail environment.
