Reports were made earlier on in the month that Superdry was allegedly in talks with accountancy firm PricewaterhouseCoopers to consider debt options after years of what GlobalData associate apparel analyst Alice Price described as “lacklustre” results.
“Superdry has struggled to modernise its product offering and align with current trends and is now predominantly favoured by older consumers looking for practical clothing,” Price had explained.
The retailer did not explicitly name PricewaterhouseCoopers in its latest statement but instead said it was “working with advisors to explore the feasibility of various material cost-saving options.”
Last week, (26 January) Superdry’s founder and CEO Julian Dunkerton said that H1 2024 had been a “difficult period” for the company.
The retailer reported a 23.5% fall in group revenue for the six months to 28 October 2023, which it attributed to a “challenging consumer retail market”.
Dunkerton admitted that he does not expect market conditions to get any easier in the near term. “However, I firmly believe we are taking the right steps for the business and the brand, to return Superdry to profitability,” he added.
Superdry pointed out last week it was progressing with its turnaround programme, which focuses on “improving efficiency, driving simplification and establishing a target operating model”.
In August Superdry secured a secondary lending facility of up to £25m ($32m) from restructuring specialist Hilco Capital to support its turnaround plan and cost reduction programme.
The agreement was an add-on to Superdry’s pre-existing asset-backed lending facility of £80m, including a £30m term loan over three years with the option to extend, with Bantry Bay Capital, made back in December 2022.
The brand now asserts it is continuing to drive its cost reduction agenda forward and is expected to deliver over £40m in savings this financial year which would be ahead of the initial £35m target, with more than £20m of those saving already achieved in its H1.
CFO steps down
The brand also announced that Shaun Wills, a board member, who is said to have been a “key figure” in delivering several operation and strategic programmes, will be leaving his position as chief financial officer (CFO) on 31 March 2024.
Superdry has appointed Giles David as interim CEO from 29 January 2024.
David is reported to have a strong track record in consumer-facing businesses where he has operated “successfully in turnaround environments” at companies such as McColls, Casual Dining Group and Wiggle.
