Superdry has confirmed it is considering a significant round of cost-cutting as the struggling fashion retailer contends with slumping sales.
The British brand is drawing up plans for potential store closures and job cuts after it reported last week that sales dropped by nearly a quarter in the six months to October. The delayed results were accompanied by the appointment of a new finance boss, the fifth in five years.
The company, which has about 3,350 staff and more than 215 stores, on Monday said it had hired “advisers to explore the feasibility of various material cost saving options.”
It added: “While there is no certainty that any of these options are progressed, they aim to build on the success of the cost saving initiatives carried out by the company to date and position the business for long-term success.”
Monday’s announcement came in response to a report on Saturday by Sky News saying Superdry was considering a significant number of store closures and job cuts with the consultancy PwC. Those cuts could come as part of a company voluntary arrangement or a restructuring, either of which would involve Superdry working with creditors to try to make its debts manageable.
Superdry’s market value has slumped in recent years. Its share price reached £19 in 2017, but was just 17p on Monday, giving it a value of £17.5m.
Julian Dunkerton co-founded Superdry in 2003 as a market stall in Cheltenham, growing it into one of the most successful names on the UK high street selling T-shirts, jeans and coats.
However, Superdry has struggled in recent years, and has gone through a turbulent few years after Dunkerton left before forcing his way back in a 2019 boardroom coup.
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In recent months, Superdry has blamed its poor sales on the general weakness of the fashion market, with deep discounting by rivals, as well as milder weather that has prevented people from spending on winter items such as coats.
The company on Monday emphasised that it is already looking at steep cost cuts, with £40m already earmarked, compared with a previous aim of £35m. It said it had already made £20m of those cuts.
