Superdry appeared to be on the mend after securing a refinancing. Now the struggling British clothing retailer is bringing more help on board. Following a profit warning in January, the company has now confirmed that it has hired Interpath Advisory to help cut costs.
“Although Superdry has had strong in-store and online business and the brand continues to resonate well with consumers, market conditions are challenging for all brands in the fashion sector,” the clothing maker told FashionUnited. “We have engaged Interpath to advise us to successfully complete Superdry’s restructuring process in today’s dramatically changed retail environment and ensure we have the right cost base and structure for future success.”
Headwind for Superdry
Superdry and Interpath have not commented on the exact details of the agreement. However, the decision comes against the backdrop of difficult market conditions that the clothing brand continues to struggle with. The company recently reported a drop in sales.
The brand’s revenue suffered from the dwindling consumer climate and restrictions at the start of the Covid-19 pandemic. Julian Dunkerton, the brand’s co-founder, returned to the company as CEO to initiate a turnaround.
At first it appeared that Dunkerton’s efforts had paid off as Superdry reported an increase in sales for the first half of fiscal 2002, supported by strong performance and jacket sales. Just a month later, the brand’s optimism was dampened when the company cut full-year earnings guidance due to mounting fourth-quarter uncertainty.
Interpath’s entry comes amid speculation about a possible privatization of the company. However, these claims were denied by Dunkerton. In a statement to the London Stock Exchange, he said that “there are no plans at this time to consider anything of the sort.”
This translated post previously appeared on FashionUnited.uk.