Superdry looks at ‘cost-saving options’ after potential store closure reports

The retail brand said it is ‘working with advisers to explore the feasibility of various material cost saving options’.

Henry Saker-Clark
Monday 29 January 2024 03:09 EST
SuperDry has said it is assessing “cost saving options” with advisors after reports it could stores and jobs (Ian West/PA)
SuperDry has said it is assessing “cost saving options” with advisors after reports it could stores and jobs (Ian West/PA) (PA Archive)

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Troubled fashion brand Superdry has said it is looking at various “cost-saving options” after reports it is considering a major restructuring which could include store closures and job cuts.

On Saturday, Sky News reported that Superdry is working with advisers at PwC on a plan which could lead to a CVA (company voluntary arrangement) or another form of restructuring.

Such a move could result in store closures and potentially force through rent reductions with landlords.

On Monday, Superdry told the stock market: “In line with the company’s turnaround strategy, the company confirms it is working with advisers to explore the feasibility of various material cost-saving options.

“Whilst 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.”

It comes days after the firm revealed a sharp slump in sales over the half-year to October and warned shareholders its fortunes could still take some time to turn around.

On Friday, the clothing firm said that its revenue had fallen by nearly a quarter (23.5%) to £219.8 million in the six months to the end of October, with adjusted loss nearly doubling to £25.3 million.

The retail business, which employs around 3,350 globally, said it also cut around £20 million in costs over the half-year and is on track for over £40 million in savings for the current year.

This saw the business close 12 stores over the first half of the financial year, taking its estate down 216 owned stores. The company also runs shops through franchisees.

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