M&G, the landlord of Superdry, considers challenging the rescue plan | Business News

The owner of Superdry’s flagship store on Oxford Street is considering a challenge to a rescue plan that would impose significant cuts on the struggling chain’s landlords. M&G, the asset manager that owns the 32,000 square foot store, has enlisted lawyers to review the restructuring plan put forth by Superdry.

While M&G’s move may not lead to a formal legal challenge, industry sources suggest that it is a possibility. Other landlords, such as Landsec, are also keeping a close eye on the situation as detailed proposals are set to be disclosed next month.

The restructuring plan does not involve immediate store closures but will require substantial rent reductions for landlords of numerous Superdry outlets. In response, a Superdry spokesperson emphasized that the plan is crucial for securing the long-term future of the business and hopes for landlord support.

In addition to rent cuts, Superdry intends to raise funding backed by founder Julian Dunkerton and delist from the London Stock Exchange. The company’s survival efforts come after failed takeover talks with Dunkerton and amid mounting financial challenges that have weighed heavily on its stock performance.

Shares in Superdry have plummeted in recent months, trading at around 7.4p on Friday with a market capitalization of less than £8m. The company has secured increased borrowing capacity with Hilco Capital and owes substantial sums to Bantry Bay. Dunkerton, who returned to the company in 2019, holds nearly 30% of the shares.

Despite the challenges, Superdry has been taking steps to raise cash by selling its brand in various regions. The outcome of the restructuring plan and creditor approval will be critical for the future of the iconic fashion chain.