Superdry, facing ongoing challenges, has confirmed discussions with advisors to explore potential cost-saving options. The company aims to continue its turnaround strategy, focusing on building long-term success by prioritizing cost reduction. Despite weak sales trends and the departure of its CFO, Superdry is determined to achieve over £40 million in savings this financial year.
Responding to recent press speculation, Superdry’s stock exchange release addressed reports of a possible “radical restructuring.” While no detailed proposals have been formulated, talks with advisors, including PwC, suggest options such as store closures, rent cuts, and potential job cuts. The company may consider a Company Voluntary Arrangement (CVA) or restructuring plan to navigate through its challenges.
The once-thriving Superdry, co-founded by Julian Dunkerton, faced setbacks after his 2019 boardroom coup. The pandemic exacerbated its troubles, leading to falling sales, losses, and cost-cutting initiatives. Although the share price saw a slight increase, the current valuation values the entire business at less than £18 million, a stark contrast to its £2.2 billion valuation in January 2018.
Speculation persists that Dunkerton, holding about a quarter of Superdry’s shares, might explore taking the company private for a turnaround away from stock exchange scrutiny. This move aligns with successful examples like Jigsaw and Monsoon, privately held mid-market chains that emerged positively after undergoing the CVA process. The company is determined to address its challenges and explore viable solutions for a sustainable future.
