Superdry unilaterally cutting rent it pays to commerc...

Superdry wants to slash the rent it pays the landlords of 39 of its UK city centre stores, as part of an emergency restructuring deal.

The fashion retailer is also delisting from the stock market and is seeking an equity raise of up to £10m underwritten by its founder Julian Dunkerton.

The business, which runs 216 shops as well as franchised stores, has been investigsating money-saving measures after a year of weakening sales and deepening losses.

The plan will result in “material cash savings from rent and business rate compromises” over the next three years, the company says. It aims to achieve “a more stable footing, accelerate its turnaround plan and drive it towards a viable and sustainable future”.

In a statement Dunkerton says: “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.”

The restructuring plan is said to be dependent on the successful completion of the equity raise, which requires shareholder approval. Superdry claims it will have to enter administration if the plan is not implemented.

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Peter Why Do I Bother
17 April 2024 18:30 PM

Michael, while I agree with some of your sentiment and reasoning I must point out that if I went into Superdry and said ok I’ll take a T-shirt or two and paying 40% less what would be the outcome?

Also could we as landlords (24 years of experience) say to the mortgage companies I am now paying 40% less because tenants have an headache. Not forgetting shelter and CAB have give them good advice to not pay.

Could I say I cannot afford it as it impacts my cash flow? No

Retail and PRS are very different as you know and most of PRS operate on smaller margins and not operated by large pension companies, although that may change.