Superdry outlines wider restructuring plan to avoid insolvency, confirms store closures

Superdry is calling on its shareholders to vote for its Capital and Restructuring Measures in a bid to avoid a possible insolvency and allow the company to “return to a more stable footing” while accelerating its turnaround plan.

The latest news builds on the plan outlined by the British retailer earlier in April, which centred around the restructuring of its UK retail estate, with store closures to go ahead in the region alongside the “reduction of its cost-onerous store footprint” internationally.

It has now confirmed that this will impact European-based stores, of which approximately 25 to 30 locations are expected to close over the next 12 months.

Superdry is further planning to implement a new third party e-commerce platform to replace its existing system in the hope of revitalising and establishing a more efficient e-commerce strategy both in the UK and abroad.

Up to 30 European stores to close

Additional efforts are to be made among its product ranges, the construction of which are to now take a “data-led” approach while a separate design team is to oversee short lead time products based on real-time trends.

Superdry added it was planning to move away from “traditionally segmented seasonal ranges that prove to be commercially challenging” as well as employing a pricing strategy that is no longer “discount led” in order to deliver improved margins.

Ultimately, the company is targeting a group revenue between 350 and 400 million pounds, with a gross margin “slightly ahead of current levels” and a mid to high-single digit EBITDA margin.

A further mission is in returning the underlying retail channel to positive like-for-like revenue growth, alongside a more efficient and focused operating cost base.

Superdry has requested for its shareholders to approve both the plan as well as the proposed equity raise – aiming for a target of 10 million pounds – and delisting from the London Stock Exchange, all of which are linked and can be voted on in a meeting on June 14.