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(Alliance News) - Clothing retailer Superdry PLC early Monday confirmed it is working with advisors to consider "the feasibility of various material cost saving options".
Sky News on Saturday had reported that Superdry is working with PricewaterhouseCoopers on a restructuring plan that could involve store closures and job cuts.
The plan could involve a company voluntary arrangement, an insolvency mechanism that enables businesses to reduce their liabilities to creditors, Sky said without citing sources. This would allow Superdry to close underperforming shops and force through rent cuts, it said.
https://news.sky.com/story/superdry-weighs-restructuring-as-sales-slump-continues-13057371
Superdry on Monday said the new cost review builds on the cost saving initiatives it has already carried out as part of its turnaround strategy.
On Friday, Superdry released its interim results, saying challenging markets and poor weather had hurt earnings. The company also is set to lose another finance chief in March.
The Cheltenham, England-based clothes retailer posted GBP219.8 million in revenue for the six months to October 28, down 24% from GBP287.2 million a year prior. It swung to a pretax profit of GBP3.3 million from a loss of GBP17.7 million on a statutory basis, but its adjusted pretax loss widened to GBP25.3 million from GBP13.6 million.
Superdry said it reduced operating costs by 16% in the recent half-year, crediting its "ongoing efforts to rightsize our operating cost base". Superdry is set to deliver more than GBP40 million in cost savings in the current financial year, ahead of its previous target of GBP35 million, it said. More than GBP20 million of these saving were achieved already in the first half, it noted.
The company also on Friday had announced the replacement of its chief financial officer, with Shaun Wills stepping down after three years with the company on March 31. Giles Davis has been appointed interim CFO, joining Superdry on January 29, with an expected appointment on April 1. Davis will, come April, be Superdry's fifth CFO in as many years.
Superdry operates 216 shops and around 369 franchisees and licensees. It employs more than 3,350 people.
It said on Monday that there is no certainty the cost savings options now being discussed with its advisors will be progressed.
Superdry shares closed down 2.6% at 16.44 pence on Friday. The stock is down 87% over the past year.
By Tom Waite, Alliance News editor
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