The owner of Superdry’s central London flagship store is weighing up a challenge to a rescue plan that would impose steep haircuts on the struggling chain’s owners.
Sky News has learned that London-listed asset manager M&G has hired lawyers from Hogan Lovells to scrutinize a restructuring plan launched by Superdry earlier this month.
The decision by M&G, which owns the fashion retailer’s 32,000 square foot store on Oxford Street, will not necessarily result in a formal legal challenge.
However, real estate industry sources said on Friday that such a move was a possibility.
Other Superdry owners, including Landsec, are monitoring the situation ahead of the release of detailed proposals next month.
Property groups are believed to have been alarmed by their lack of participation in a mechanism that would allow creditors to benefit from any future recovery in retailer performance.
The restructuring plan will not entail immediate store closures, but will impose considerable rent cuts on the owners of dozens of Superdry stores.
In a statement, a spokesperson for the retailer said: “The Restructuring Plan is a process designed to secure the long-term future of our business.
“We hope our owners will support us as we embark on implementing our new target operating model.”
M&G declined to comment.
Read more about business:
British cars flow to states neighboring Russia
Trade war over electric cars
NatWest profits fall
Alongside rent cuts, Superdry plans to raise funding underwritten by founder Julian Dunkerton and delist from the London Stock Exchange.
The Cheltenham-based company’s survival bid, which will require approval from its creditors, was launched after weeks of negotiations over a takeover by Julian Dunkerton, its founder, were aborted.
Superdry shares have been under relentless pressure in recent months as the scale of its financial challenges has been exposed.
On Friday they were trading at around 7.4p, giving the debt-laden company a market capitalization of less than £8m.
It recently agreed an increase in debt capacity with Hilco Capital, one of its existing creditors, although it also owes tens of millions of pounds to Bantry Bay.
Dunkerton, who returned to the company in 2019 after being fired, holds just under 30% of the shares.
In recent months, Superdry has raised money by selling its brand in regions including India and Asia-Pacific.
This story originally appeared on News.sky.com read the full story
