Superdry weighing up store closures to cut costs

Store closure

UK clothing company Superdry has revealed that it is exploring various “cost saving options” to secure the future of the business.

The announcement came in response to reports over the weekend that Superdry was considering a major restructuring that could involve store closures and job cuts.

The retailer confirmed on Monday that it was working with advisors to explore the feasibility of various cost saving measures.

“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,” the board of directors said in a statement.

In its first-half report last week Superdry said that recent trading had been challenging, with revenue down 23.5% on the previous year.

“A challenging consumer retail market, set against a backdrop of macroeconomic uncertainty and some remarkably unseasonal weather conditions, have all combined to weaken the financial performance of the group,” said chief executive Julian Dunkerton.

However, he also reported “significant success” in cutting costs, with the ongoing cost efficiency programme now expected to achieve £40m in savings within the year, ahead of the initially stated target of £35m.

As well as measures to improve efficiency, the company has closed its US operations and raised funds by selling brand rights in non-core territories.