Among key news on UK stocks, Superdry PLC (GB:SDRY) share price crashed today after the company announced a major restructuring plan, posing a threat of delisting from the London Stock Exchange (LSE). The restructuring plan, launched by C-Retail Limited, a subsidiary of the company, mainly focuses on overhauling its UK property portfolio and retail cost base.
In light of this restructuring, which aims to deliver a target operating model, Superdry also announced an equity raise to ensure sufficient liquidity and a plan to exit the LSE. Superdry shares were down by 34% today, as of writing.
In February, the Superdry stock surged by over 100% amid takeover speculations. Year-to-date, the Superdry share price has plummeted by a significant 84%.
Superdry is a global clothing brand known for its high-quality products. The company’s product range also includes footwear, accessories, and cosmetics.
Superdry’s Survival Strategy
As part of its restructuring plan, Superdry announced an equity raise to secure additional funding. This will be structured either as an open offer at 1p per share, aiming to raise proceeds of up to €8 million, or as a placing at 5p per share, with gross proceeds totaling £10 million.
Additionally, the company intends to make changes in its debt facility agreements, including extensions of maturity dates and incremental facilities, with lenders such as BB Funding and HUK 128 Ltd.
The company will also implement changes to its leasehold obligations to mitigate losses and reduce rent liabilities. This will entail rent reductions at its stores in 39 locations across the UK, leading to significant cash savings over the three years of the restructuring plan.
Are Superdry Shares a Good Buy?
On TipRanks, SDRY stock has a Hold consensus rating based on one Hold recommendation from RBC Capital analyst Manjari Dhar. After today’s crash, her price target of 40p implies an upside potential of 682.8% on the current trading level.
