DJ Superdry plc: Proposed Restructuring Plan, Equity Raise and Delisting

===
Superdry plc (SDRY)
Superdry plc: Proposed Restructuring Plan, Equity Raise and Delisting
16-Apr-2024 / 07:00 GMT/BST
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
NOTHING IN THIS ANNOUNCEMENT SHALL CONSTITUTE OR FORM A PART OF ANY OFFER, INVITATION OR RECOMMENDATION TO PURCHASE,

SELL OR SUBSCRIBE FOR ANY SECURITIES IN ANY JURISDICTION.  NOTHING IN THIS ANNOUNCEMENT SHOULD BE INTERPRETED AS A TERM 
OR CONDITION OF THE EQUITY RAISE.  NOTHING CONTAINED IN THIS ANNOUNCEMENT SHALL FORM THE BASIS OF, OR BE RELIED UPON IN 

CONNECTION WITH, OR ACT AS AN INDUCEMENT TO ENTER INTO, ANY INVESTMENT ACTIVITY. ANY DECISION TO PURCHASE, SUBSCRIBE
FOR OR OTHERWISE ACQUIRE, OR TO SELL OR OTHERWISE DISPOSE OF, ANY SECURITIES MENTIONED IN THIS ANNOUNCEMENT MUST BE
MADE ONLY ON THE BASIS OF THE INFORMATION CONTAINED IN AND INCORPORATED BY REFERENCE INTO THE CIRCULAR, ONCE PUBLISHED.
PLEASE SEE THE IMPORTANT NOTICES AT THE END OF THIS ANNOUNCEMENT.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF THE MARKET ABUSE
REGULATION (EU 596/2014), WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.
For immediate release
16 April 2024

Superdry plc
("Superdry" or the "Company")

Proposed Restructuring Plan, Equity Raise and Delisting
Superdry previously announced that it has been exploring various material cost saving options as part of a broader
turnaround plan that positions the Company for long-term success.
Today, in support of that objective, the Company announces that C-Retail Limited (the "Plan Company"), a wholly-owned
subsidiary of the Company which owns the leasehold portfolio of the Superdry group (the "Group") from which its UK
store retail business trades, is launching a restructuring plan pursuant to Part 26A of the Companies Act 2006, which
will principally involve a restructuring of its UK property estate and retail cost base (the "Restructuring Plan"). The
Restructuring Plan is a key element of the Company's turnaround plan that is intended to help the Company deliver its
new, more financially sustainable, target operating model.
In order to support the Company's transition to this new target operating model over the coming years, Superdry is
today also announcing an equity raise that will provide necessary liquidity headroom (the "Equity Raise"), as well as
its intention to delist from the London Stock Exchange (the "Delisting"), which will allow the Company to benefit from
significant cost savings associated with being listed and implement its turnaround plan away from the heightened
exposure of public markets. The Equity Raise is fully supported and underwritten by Julian Dunkerton, Superdry's CEO
and Co-Founder.
Together, the Restructuring Plan, Equity Raise and Delisting constitute a key package of measures that are needed to
allow Superdry to return to a more stable footing, accelerate its turnaround plan and drive it towards a viable and
sustainable future. Therefore, each element of this package will be inter-conditional upon the others, such that the
package as a whole requires each of the Restructuring Plan, Equity Raise and Delisting to be approved.
Restructuring Plan
The Restructuring Plan will principally involve and facilitate the compromise and amendment of the Plan Company's
leasehold obligations, to reduce losses and property-related (including rent) liabilities. The Restructuring Plan will
also involve the compromise of the Plan Company's business rates liabilities owed to local authorities and will effect
amendments to the Group's debt facility agreements with its principal secured lenders, BB Funding (GBP) S.à r.l. ("
Bantry Bay") and HUK 128 Limited ("Hilco").
A restructuring plan is a formal procedure under Part 26A of the Companies Act 2006 for companies in financial
difficulties, that are affecting its ability to carry on as a going concern, to agree with its creditors a compromise
or arrangement in respect of its debts owed to those creditors.
On 28 March 2024, the Group's debt facility agreement with Hilco was amended to provide for two incremental facilities
for an aggregate amount of GBP20 million, including a seasonal facility of up to GBP10 million. This seasonal facility is
conditional upon Hilco being satisfied that sufficient progress has been made by the Plan Company in relation to the
implementation of cost savings measures, including the Restructuring Plan.
The Restructuring Plan, once completed, is expected to result in:
-- rent reductions on 39 UK sites;

-- the extension of the maturity date of loans made under the Group's debt facility agreements with Bantry
Bay and Hilco;

-- confirmation from Hilco that the conditions to making the seasonal incremental facility described above
have been satisfied; and

-- material cash savings from rent and business rate compromises over the 3 year period of the Restructuring
Plan.

The Restructuring Plan is conditional on the Company receiving the proceeds of the Equity Raise to help ensure that the
Company has the necessary liquidity headroom to deliver its turnaround plan. The Company has consulted with Bantry Bay
and Hilco, who have consented to the launching of the Restructuring Plan and remain supportive of the Company.
Further details on the Restructuring Plan are set out in Appendix 1 to this announcement and included in the Practice
Statement Letter ("PSL") sent to impacted creditors today.
The launch of the Restructuring Plan is not expected to affect the ordinary course operations of Superdry, and in
particular:
-- the Group's suppliers, employees and landlords of sites outside of the UK will not be affected;

-- except for the creditors compromised by the Restructuring Plan (which principally comprise landlords of
UK sites, rating authorities, Bantry Bay and Hilco), no other creditors' claims will be affected; and

-- the process to implement the Restructuring Plan is expected to complete in June 2024, with the sanction
hearing for the Restructuring Plan expected to be held on 17 and 18 June 2024 (the "Sanction Hearing").
The Plan Company believes that, unless the Restructuring Plan comes into effect, it will need to enter administration
and other companies in the Group will need to enter into administration or an equivalent insolvency process. This
outcome would leave creditors, including the creditors whose claims would otherwise be compromised by the Restructuring
Plan, materially worse off than they would be under the Restructuring Plan.
The Restructuring Plan is an important element of helping the Company deliver its new, more financially sustainable,
target operating model. The target operating model also incorporates other measures including, among others: returning
the underlying Retail channel to positive like-for-like revenue growth through internal initiatives such as improved
product ranges and a reallocation of marketing spend, and also an improvement in the external environment; an
improvement in gross margins through initiatives such as improved promotional strategies; and a more efficient and
focused operating cost base appropriate for the Group's target revenue base, benefitting from initiatives including the
delisting. On a medium-to-long term view, whilst recognising there is a complex pathway in the interim to navigate in
order to deliver this, the target operating model targets Group revenue of between GBP350m to GBP400m, a gross margin
slightly ahead of current levels, and mid to high-single digit EBITDA margin (on a pre-IFRS 16 basis).
Equity Raise
The Company continues to face challenging trading conditions and, as announced on 28 March 2024, recently extended and
increased its secondary lending facility with Hilco to provide improved liquidity headroom as it implements its
turnaround plan. To further bolster that liquidity headroom and provide the Company with the appropriate degree of
funding certainty to enter into the Restructuring Plan, the Company is today announcing a proposed Equity Raise (which
is fully supported and underwritten by Julian Dunkerton, Superdry's CEO and Co-Founder), to provide it with additional
equity funding.
The Equity Raise will be structured in one of two different ways. Shareholders will be asked to approve both different
options and, assuming shareholders do so, Superdry's independent directors, in consultation with Julian Dunkerton and
Peel Hunt (the Company's financial advisers), will in due course (after shareholders have voted) choose the option to
be adopted by Superdry. The two different options are as follows:
-- Option A: an open offer at GBP0.01 per share to raise gross proceeds of the sterling equivalent of up to EUR8
million (the "Open Offer"); or

-- Option B: a placing at GBP0.05 per share to raise gross proceeds of GBP10 million (the "Placing").

In the Open Offer, Superdry's existing shareholders (other than those in certain restricted overseas jurisdictions)
will retain their pre-emption rights and will therefore be able to participate pro rata to their existing
shareholdings. The Open Offer will be fully underwritten by Julian Dunkerton, which ensures that the Group will
receive the full EUR8 million. The Placing would be open to Julian Dunkerton only (with the pre-emption rights of
existing shareholders disapplied).
Completion of the Equity Raise is conditional on a number of matters, including:
-- shareholders passing the necessary resolutions to approve the Open Offer and/or the Placing as well as
the Delisting (the "Resolutions") at a general meeting to be convened by the Company in due course (the "General
Meeting"); and

===
(MORE TO FOLLOW) Dow Jones Newswires

April 16, 2024 02:00 ET (06:00 GMT)

===
-- the Restructuring Plan having been sanctioned by the court.

Julian Dunkerton, who held approximately 26.36% of Superdry's issued share capital as at the close of business on 15
April 2024, has irrevocably undertaken to vote in favour of all the resolutions to be proposed at the General Meeting
(other than those on which he is not entitled to vote).
Similarly, each of Superdry's directors who holds shares in Superdry (excluding Julian Dunkerton) has irrevocably
undertaken to vote in favour of all the resolutions to be proposed at the General Meeting in respect of his or her own
holding of Superdry shares, which in aggregate represented approximately 0.23% of the Company's issued share capital as
at the close of business on 15 April 2024.
The Resolutions will include approval by independent shareholders of Julian Dunkerton's participation in the Equity
Raise as a "related party transaction" for the purposes of Chapter 11 of the Listing Rules and for the purposes of Rule
9 of the City Code on Takeovers and Mergers
Further details about the Equity Raise, including the Company's approach to determining which of Option A or Option B
will be implemented if both are approved by shareholders at the General Meeting, will be included in a shareholder
circular, expected to be published in May 2024 (the "Circular").
Superdry has also been exploring raising funds through potential transactions relating to its brand and intellectual
property in non-core territories. However, the Board considers it unlikely that any such deals could be negotiated and
completed in the requisite timeframes.
Delisting
Given the material changes to the Company's business envisioned under the new target operating model, the Company
considers it best to implement these changes away from the heightened exposure of public markets. In addition, the
Company believes it can achieve significant annual cost savings from the Delisting that will contribute to delivering
its target operating model.
As a result, subject to shareholder approval at the General Meeting, the Company intends to make the relevant
applications to effect the cancellation of the listing of its shares on the Official List maintained by the Financial
Conduct Authority ("FCA") and their trading on the London Stock Exchange's Main Market for listed securities.
The Company intends to explore the implementation of a matched bargain facility with a third party matched bargain
facility provider in the event the Company is delisted. This will facilitate shareholders buying and selling shares on
a matched bargain basis following the Delisting. If the Company decides to implement such a facility, further detail
about it will be set out in the Circular.
Further details of the Delisting and the implications of the Delisting for shareholders will be included in the
Circular.
Anticipated timetable

Publication of PSL                    16 April 2024 
Restructuring Plan Convening Hearing  16 May 2024 
Publication of Circular               May 2024 
General Meeting                       June 2024 
Restructuring Plan Sanction Hearing   17 and 18 June 2024 
Restructuring Plan becomes effective  June 2024 
Delisting                             July 2024 
Equity Raise completes                July 2024 

===
These dates are provided by way of indicative guidance and are subject to change. If any of the above dates change, the Company will make further announcements as appropriate.

Peter Sj?lander, Superdry Chairman, commented on today's proposals:

The Board has spent a lot of time engaging with Julian Dunkerton to come up with a plan which gives the business the best possible prospects for the long term while protecting the interests of shareholders and other stakeholders to the greatest extent possible. The business has faced extraordinary external challenges and, while good progress has been made on our cost saving initiatives, more needs to be done to get the business on a stable financial footing for the future. We believe that the proposed Restructuring Plan, combined with the Equity Raise fully supported and underwritten by Julian, is the best way to achieve this, together with a delisting which would further reduce costs and enable the business to progress the turnaround. While we recognise the compromises we are asking from some of our stakeholder groups, we would urge them to support the proposals which we believe are the best way of ensuring Superdry's recovery over the long-term."

Julian Dunkerton, Superdry CEO and Co-Founder, commented on today's proposals:

Today's announcement marks a critical moment in Superdry's history. At its heart, these proposals are putting the business on the right footing to secure its long-term future following a period of unprecedented challenges. 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."

Enquiries

===
Superdry
Peter Sj?lander, Chairman +44 (0) 1242 586747

Peel Hunt LLP (Sole Sponsor and Financial Adviser to Superdry)
George Sellar
Michael Nicholson +44 (0) 207 418 8900
Andrew Clark
Edward Lowe

Teneo Financial Advisory Limited (Financial Adviser to the Plan Company)
Gavin Maher
+44 (0) 208 052 2345
Jonathan Lees

Brunswick Group LLP (Financial PR)
+44 (0) 207 404 5959
Tim Danaher
===
The person responsible for releasing this announcement is Jennifer Richardson, General Counsel & Company Secretary.

Appendix 1

Restructuring Plan

The Restructuring Plan is an integral part of the Company's turnaround plan and transition to a new target operating model. The Company and the Plan Company believe that there is no other viable or acceptable alternative to the Restructuring Plan that would return the business to a stable financial footing, and without this process they believe that the Plan Company and other members of the Group would enter insolvency in the near term.

The Restructuring Plan will enable the Plan Company to undertake a fundamental restructuring of its UK property portfolio which will accelerate the delivery of its own and the Group's turnaround plan. The Restructuring Plan will not materially affect any other external creditors of the Plan Company or suppliers to the Group, except for those landlords of compromised sites, rating authorities and certain other creditors associated with the Plan Company's UK property portfolio and the Plan Company's secured creditors (Bantry Bay and Hilco). If approved and implemented, the Restructuring Plan will demonstrably provide these creditors with a greater return than the amount that it is estimated they would receive if the Plan Company and the other companies in the Group were to enter insolvency.

Superdry has, with advice from Teneo, their financial adviser on the Restructuring Plan, carried out a comprehensive review of the Plan Company's UK property portfolio and identified 39 sites that are underperforming and/or on unfavourable lease terms or, in certain cases, not expected to have significant strategic value going forward.

Under the Restructuring Plan, it is proposed that most of the Plan Company's landlords of UK sites and concession counterparty creditors will be arranged into seven separate classes. The rent and other payments due in respect of the leases and concession contracts in each of those classes will be compromised to a level which would mean that they are able to make a sustainable EBITDA contribution to the group (if they do not already) or will be reduced to zero.

Liabilities owed by certain Group companies under the debt facility provided by Bantry Bay will also be compromised / amended pursuant to the Restructuring Plan such that: 1. the final repayment date in respect of loans made will be extended from 22 December 2025 to the dateimmediately following the date falling three years after the Restructuring Plan takes effect; and 2. all defaults and events of default caused by the entry into the Restructuring Plan, the Delisting and theEquity Raise will be waived.

Liabilities owed by certain Group companies under debt facilities provided by Hilco will also be compromised / amended pursuant to the Restructuring Plan such that: 1. the final repayment date in respect of loans made under the Hilco Facilities Agreement will be extendedfrom 7 February 2025 to the date immediately after the date falling three years after the Restructuring Plan takeseffect; 2. Hilco will confirm that the conditions to borrowing under the incremental seasonal facility referred toabove have been satisfied; and 3. all defaults and events of default caused by the entry into the Restructuring Plan, the Delisting and theEquity Raise will be waived.

The Restructuring Plan will also compromise: 1. all business rates arears owed by the Plan Company to local authorities in respect of the period from andincluding 1 April 2024 to the effective date of the Restructuring Plan; and 2. liabilities of the Plan Company in respect of business rates for the period in which the relevant storewould be void in the "relevant alternative" (being an administration of the Plan Company).

The Restructuring Plan will not compromise claims of any creditors other than those set out above. Accordingly, the claims of all suppliers and customers, the entitlements of employees, liabilities owed to certain ancillary finance providers and sums owed to HMRC will continue to be paid in full.

MORE TO FOLLOW) Dow Jones Newswires

April 16, 2024 02:00 ET (06:00 GMT)