(Alliance News) - Shares in Superdry PLC fell after Sky News reported the ailing retailer could be forced into an emergency sale if creditor's block refinancing plans.
Shares in Superdry fell 2.7% to 6.46 pence in London on Tuesday.
Sky News said that the accelerated sale process would be launched if a restructuring plan is not approved by creditors in the coming weeks.
According to a document circulated to creditors in recent days and seen by Sky News, rejection of the restructuring plan would be followed by a four-week sale process for Superdry, with the likely outcome of a pre-pack administration deal.
https://news.sky.com/story/superdry-plots-emergency-sale-process-if-creditors-block-rescue-plan-13140589
In April, Superdry said that it would delist from the London Stock Exchange, and conduct an equity raise to provide liquidity headroom, amid ongoing cash problems.
According to Superdry, the equity raise will be structured in one of two possible ways: either via an open offer at 1.00p per share to raise gross proceeds of EUR8.0 million; or via a placing at 5.00p per share to raise gross proceeds of GBP10.0 million.
"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. 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," said Chief Executive Officer & Co-Founder Julian Dunkerton said at the time.
Sky explained the restructuring plan would need to be approved by creditors, including landlords, in the coming weeks.
By Jeremy Cutler, Alliance News reporter
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