Big fashion brand at risk of closing some of its 104 shops in huge shake up
A BIG fashion brand could close some of its stores in a shake-up designed to cut costs.
Superdry has revealed plans to cut its spending by more than £35million.
The fashion retailer said that cost of living pressures and poor weather have caused fewer shoppers to visit stores.
It comes after the brand saw less demand for its spring and summer collections in February and March.
Superdry revealed the cost-cutting plans will partly be achieved by “estate optimisation” indicating that shops could close.
The clothing chain currently has 104 shops across the UK, including in major cities like London, Glasgow, Belfast and Cardiff and 198 abroad.
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It is understood the company is exploring all options for its stores, including rent negotiations with landlords.
However, industry sources said some closures would be inevitable to cut costs as Superdry had already cut cheaper deals and monthly payments on rent with landlords leaving little wriggle room.
Superdry insisted that the announcement would not lead to store closures.
Since March the company has been working with restructuring advisers at Interpath, which recently handled the administration of Joules.
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A company spokesman said: “We are continuing to review our entire cost base but have nothing to announce at this stage.”
Superdry said it will also cut costs by continuing to reduce its clothing ranges and through logistics and distribution savings.
The company warned profits will be below what it previously told shareholders that it would broadly breakeven for the 2023 financial year.
It expects revenue to be £615million to £635million compared to £609million last year.
The struggling retailer has said it could look for fresh cash from investors.
Julian Dunkerton, Superdry’s founder and chief executive, said: “The Superdry brand continues to evolve but there is no doubt that the market conditions we face are challenging, compounded by the issues we have previously disclosed and are working to address in wholesale.
“As a result, while we continue to deliver like-for-like growth in retail sales, we need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base."
It comes after a tumultuous start to the year for the British high street with several brands announcing closures.
Among these are M&Co, M&S, Halfords and H&M.
M&Co closed seven stores yesterday, after announcing 170 will shut forever this year.
Popular stationery chain Paperchase officially pulled down the shutters on 106 shops in April after falling into administration earlier this year.
In further blows, hundreds of bank branches have also been listed to shut their doors this year.
Plus, supermarkets like Iceland have also been shutting shops in recent months.
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With costs high for shoppers too it means that people have been cutting back on non-essentials and prices continue to skyrocket.
It means that customers aren't heading into shops.
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