Superdry is considering a restructuring that could involve a “significant number of store closures and job cuts”, following the fashion retailer’s profit warning last week.
The retailer is working with its advisers at PwC on options that could lead to both closures of its stores as well as rent cuts, as first reported by Sky News.
In a statement published on the London Stock Exchange today, Superdry confirmed it is working with advisers but said that there is “no certainty that any of these options are progressed”.
The retailer said: “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.
“As set out in the company’s H1 FY24 results last week, the company has continued to prioritise driving forward its cost reduction agenda. It is set to deliver in excess of £40m in savings this financial year, ahead of the initially stated target of £35m, with more than £20m of those savings already achieved in H1.”
While detailed proposals are yet to be put together, it is anticipated that plans could include closing “underperforming shops” and “forcing through rent cuts with landlords”, Sky reported.
There is no indication of how many of Superdry’s 3,350 employees or 215 stores are likely to be impacted.
This comes after the retailer reported a fall in sales and issued another profit warning on Friday and it was confirmed that chief financial officer Shaun Wills is stepping down from the business on March 31.