In order to reduce rents, Superdry is collaborating with consultants at PwC to devise strategies for shutting down its UK stores.
As part of its restructuring options, the retailer is evaluating a company voluntary arrangement (CVA).
The struggling business has been attempting to negotiate decreased rents for its troubled stores.
In light of the challenging times ahead, the company’s CEO, Julian Dunkerton, has acknowledged the situation. Superdry’s losses are on the rise, and its CFO, Shaun Wills, has stepped down.
Superdry experienced a 23% decrease in sales to £219.8m in the half to 28 October, attributed to challenging retail conditions, atypical weather, and underperformance in its wholesale segment.
Despite this, during the recent cold weather, the company noticed some favorable indications, with a more gradual sales decline of 13.7% in the 12 weeks to 20 January.
In December, Superdry also revealed its intention to explore the sale of its brand rights in the US and Middle East with the aim of enhancing its cash flow.
Image Source: Tang Yan Song @ShutterStock