Superdry has announced its intention to delist from the London Stock Exchange (LSE) as part of restructuring plans to deliver its "new, more financially sustainable, target operating model".

The fashion retailer has financially struggled in recent months, after its founder and chief executive officer, Julian Dunkerton, withdrew a takeover bid, which saw its share price drop by almost 50%.

As part of the restructuring plans, Superdry said it believes that delisting from the LSE will "achieve significant annual cost savings".

Furthermore, it stated it will launch an equity release that will provide "necessary liquidity headroom", which is supported by Dunkerton.

Upon completion of the restructuring plan, there is expected to be rent reductions on 39 UK sites, and an extension of the maturity date of loans made under the group’s debt facility agreements with Bantry Bay and Hilco, which are the secured lenders for the plan.

Dunkerton said: "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. My passion for this great British brand remains as strong today as it was when I founded the business."

Head of money and markets at Susannah Streeter, added: "After super soggy sales, Superdry is now planning to delist to find the lifeboats needed to stay afloat. Shares went into freefall again as the plan was unveiled, the sorry trajectory underlining the company’s dramatic fall from its past status as a darling of the fashion pack.

"Founder Julian Dunkerton is determined not to give up the fight, underwriting a fresh fundraising drive. With brand recognition still strong, there is a chance Superdry will survive, but it’s sorely in need of a new style injection to reignite consumer demand."

---