Julian Dunkerton, Superdry’s chief executive and co-founder, said these choices put the business on the “right footing” and mark a “critical moment” following a period of unprecedented challenges.

Superdry has cautioned that it could go bust if it doesn’t execute a comprehensive restructuring plan – a formal procedure under the Companies Act for companies in financial difficulties – which it hopes will deliver its “new, more financially sustainable, target operating model.”

The UK company is seeking rent reductions on 39 UK stores, extending the due date of large loans and “material” cash savings from rent and business rate changes over three years to keep itself afloat.

Superdry said the three components– the restructuring plan, equity raise and delisting – will allow it to “accelerate its turnaround plan and drive it towards a viable and sustainable future.”

The clothing company added it was best “to implement these changes away from the heightened exposure of public markets.”

Superdry stated that its restructuring plan is intended to help it “deliver its new, more financially sustainable, target operating model.” It also assured it 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.

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As part of its plan, the company seeks to raise up to £10m ($12.4m) by selling new shares, known as an equity raise which it said “will provide necessary liquidity headroom.”

Dunkerton will personally back the equity raise, and said it shows his “passion for this great British brand remains as strong today as it was when I founded the business.”

Superdry said it also wants to boost sales by improving its product ranges and reallocating marketing spending.

The retailer announced the plans a fortnight after Dunkerton confirmed he did not intend to make an offer for the business.

Superdry chairman Peter Sjӧlander commented on the plan and said: 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.”

Superdry is hoping to carry the restructuring plan out by July 2024.

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 £350m to £400m, a gross margin slightly ahead of current levels, and mid to high-single digit EBITDA margin.

At the beginning of this year, the retailer reported a 23.5% fall in H1 group revenue, which it attributed to a “challenging consumer retail market”. The brand also said it was impacted by unseasonable weather and “underperformance” in its wholesale segment.