If Superdry doesn’t get its rescue plan approved by creditors, it could run a four-week auction process, a report claimed on Tuesday.

It could run the emergency sale if, in a few weeks’ time, creditors block the recovery plan that entails founder Julian Dunketon pumping up to £10 million of his own money into the business and the retailer being delisted from the London Stock Exchange. 

Creditor approval, including from the firm’s landlords, is mandatory for the rescue plan to go ahead.

Sky News reported the alternative strategy saying it had seen a document circulated to creditors in recent days. It also mentioned the prospect of a pre-pack administration deal.

But Dunkerton, who returned to the business several years ago to spearhead its turnaround, clearly believes in Superdry’s survival chances and sources told Sky that his “willingness to inject such a substantial chunk of his own fortune into the company reflected his confidence in the company’s turnaround prospects”.

So are creditors likely to back the plan? They often do in such situations as the alternative is usually unlikely to turn out any better for them. But Sky had revealed last month that asset manager M&G — owner of Superdry’s central London flagship store — was considering a challenge due to the lack of any plans for creditors to benefit in future should the firm recover.

With the plan involving rent cuts, it clearly believes it should get some sort of benefit further down the line.

Sky also cited sources saying Superdry would exit some international markets, including the US. 

But as is usually the case in these situations, the company hasn’t commented.

The retailer’s shares have plunged in recent years and on Tuesday they were priced at less than 6p each. That meant a firm worth billions a few years ago is now worth under £6 million on paper.