Superdry prepares to publish restructuring plan, Sky News reports

Troubled British fashion chain Superdry is in advanced stages of preparing a restructuring plan that is expected to be launched in the coming days, the company said on Monday.

There is no certainty that the plan will be implemented, he added, without giving further details.

The announcement follows a Sky News report that said the fashion chain could unveil a plan as soon as Tuesday that includes steep rent cuts at some of its 94 British stores.

The scale of the proposed rent cuts will be determined by the financial performance of each store, and landlords would have the option to terminate leases if they were dissatisfied with the terms of the deal, Sky News added.

Shares in the London-listed company rose more than 8% following the report, but then reversed course and fell 5.8% by 1350 GMT.

The report comes weeks after CEO and largest shareholder Julian Dunkerton said he will not make a bid for the company.

The maker of jackets and apparel inspired by American vintage styles and Japanese graphics has been struggling as tough consumer retail market conditions and weak wholesale orders have pressured its stock.
Superdry warned on profits in January and said it does not expect market conditions to improve in the short term after a tough Christmas season.

Last month, the retailer said it had agreed a six-month extension and an increase of up to 20 million pounds ($24.9 million) to its secondary credit facility with Hilco Capital.