British clothing retailer Superdry Plc has completed a capital increase, raising £12m (about €13.65m).
The majority of the sum comes from the 14.5 million shares placed by investment banks Peel Hunt and Liberum with certain institutional and other investors at a price of 76.3 British pence (around 0.86 euros) per share, resulting in gross proceeds of around £11.1 million. In addition, private investors subscribed to a total of 1.21 million REX shares at the issue price via the REX platform, generating gross proceeds of around £0.9 million (around 01.02 million euros). The share price represented a 9.9 per cent discount to the closing share price of 84.7 British pence (approximately 0.96 euros) on 2 May 2023, the day Superdry’s capital increase was announced.
Julian Dunkerton, CEO and founder of Superdry, also participated in the recent capital increase, increasing his stake in the company from 24.74% to 25.37%. Superdry is working to strengthen its balance sheet following a string of profit warnings largely due to a fall in demand and a delayed recovery from the pandemic.
Superdry aims to turn the tide
Prior to the pandemic, the company, led by Dunkerton, had been pursuing a turnaround strategy that would see the brand regain its former glory as a leading fashion retailer. The transition has been complicated by the closures during the pandemic, and the retailer has since At the end of the lockdowns, several cost-cutting initiatives were announced to get the company back on track.
In March, Superdry agreed to sell its trademark rights in numerous Asian markets to South Korea’s Cowell Fashion Company for USD 50 million (EUR 46 million). Then, last month, it announced an agreement with lender Bantry Bay to increase credit availability under its asset-backed line of credit pending the completion of the sale of the APAC business.
Superdry also confirmed this week that Chief Operating Officer (COO) Silvana Bonello has left the company. Bonello joined the retail company in 2021 and has played a key role in the company’s ongoing transformation strategy.
This translated post previously appeared on FashionUnited.com.