Superdry PLC (LSE:SDRY) on Monday confirmed recent press speculation that it is working with advisors to explore the “feasibility of various material cost saving options”.
But the branded goods retailer did not comment on reports by Sky News that the company is weighing a radical restructuring that could involve significant numbers of store closures and job cuts amid weak sales.
On Saturday, Sky said the company and its advisers at PricewaterhouseCoopers are working on plans that could lead to a company voluntary arrangement or restructuring plan.
Both are insolvency mechanisms enabling businesses to reduce their liabilities to creditors.
Sky said this could be aimed at closing underperforming shops, with a commensurate impact on jobs, and forcing through rent cuts with landlords.
On Monday, Superdry said the aim is to build on the success of the cost-saving initiatives carried out to date and position the business for long-term success.
Superdry is aiming to deliver in excess of £40 million in savings this financial year, with more than £20 million of those savings already achieved in the first half.