Superdry (LSE: SDRY) is exploring a major overhaul involving widespread store closures and job cuts, Sky News reported Saturday.
The struggling British fashion retailer and advisors PwC have initiated planning for a potential company voluntary arrangement (CVA).
CVAs allow firms to reduce liabilities by shuttering underperforming locations and negotiating rent decreases with landlords. There was no clear indication yet of how many of Superdry’s employees and stores could be impacted by such moves. But large-scale cuts are reportedly being weighed to slash costs.
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It comes after Superdry posted a 23.5% drop in half-year revenue amid “challenging” trading. It also announced finance director Shaun Willis will depart in March, succeeded by Giles David as interim CFO.
Superdry warned in December that full-year profitability will suffer due to weaker sales. Shares crashed to a record low of 16.44p Friday, nearly wiping out its market value.
Questions now linger over whether founder Julian Dunkerton, who owns 25% of stock, will bid to take the struggling retailer private. Superdry shares are down 86% over the past 12 months.
