Superdry has officially announced that it is in discussions with advisors to explore various options for cost-saving measures. The company released a statement to address recent speculation and reaffirm its commitment to its turnaround strategy. Superdry aims to capitalize on the success of previous cost-saving initiatives and position itself for sustainable long-term success.

One of Superdry’s key priorities is to drive its cost-reduction agenda, with a target of achieving over £40 million in savings within the current financial year. This goal surpasses the company’s initial target of £35 million, highlighting its determination to streamline its operations and improve efficiency.

The decision to release the statement was prompted by a report from Sky News, which suggested that Superdry was considering a major restructuring. It is speculated that the company is working with PwC to explore options that may involve store closures and rent reductions. While detailed proposals have yet to be formulated, the report indicated that a significant number of store closures and job cuts could be possible, potentially leading to a company voluntary arrangement (CVA) or restructuring plan. A CVA would allow Superdry to negotiate rent reductions with its landlords.

Superdry has been grappling with weak sales and is also facing the impending departure of its CFO in March. These factors have contributed to the challenges the company is currently facing. In response, Superdry has implemented various cost-cutting measures and financing initiatives. However, despite a slight increase in its share price following the release of the statement, the company’s market value currently stands at less than £18 million, drastically lower than its peak value of 124 times that amount in January 2018.

The fate of Superdry’s co-founder, Julian Dunkerton, has also been the subject of speculation. Dunkerton owns around 25% of the company’s shares, and there are suggestions that he may consider taking the company private. This move could provide Superdry with the opportunity to execute its turnaround plan away from the scrutiny of a stock exchange listing. Other mid-market chains in the UK, such as Jigsaw and Monsoon, have successfully undergone CVAs and are now focused on expanding their businesses.

As Superdry continues to work with advisors to explore cost-saving options, its future remains uncertain. The retail industry continues to face challenges, exacerbated by the ongoing impact of the pandemic. However, Superdry is determined to implement its turnaround strategy and position itself for long-term success in an ever-evolving market.

Useful links:
Superdry Official Website
Retail Gazette – Retail Industry News and Analysis