Superdry PLC (LON:SDRY) plans to cut about 20% of jobs at its head office as the under-pressure fashion brand attempts to rein in costs and fight off an attempt by co-founder Julian Dunkerton to return to the business, according to media reports.
The Guardian newspaper said Superdry had begun a consultation with staff at its Cheltenham headquarters, which could result in up to 200 job losses as part of a wider plan to reduce the group’s running costs by £50mln over the next three years.
READ: Superdry founder Julian Dunkerton convenes investor meeting in plot to return to board
The newspaper noted that the cost-cutting plan had been flagged by Superdry with its half-year sales update in December, when it blamed unseasonal temperatures for disappointing sales of its hoodies and winter jackets.
At that time, the company said it was also looking to save money by closing or downsizing stores and seeking rent reductions.
The Guardian quoted a spokeswoman for Superdry, who confirmed: “We have embarked on a cost transformation programme. As part of that, we have started a process of consultation with colleagues about how it will impact our central head office functions.”
Dunkerton wants “urgent action”
The move comes days after Superdry’s founder and former chief executive Julian Dunkerton, together with co-founder James Holder, said they have convened a shareholder meeting in an effort to return to the board of the FTSE 250 clothing retailer.
In a statement released on Friday, Dunkerton and Holder, who collectively control around 29% of the company’s shares, said they would put forth resolutions to re-appoint Dunkerton to the board as well as Peter Williams, the chairman of online fashion retailer Boohoo Group PLC (LON:BOO).
Explaining the move, Dunkerton said that “urgent action” was required to address the sharp decline of the company’s share price, which has fallen around 70% in the last 12 months.
Dunkerton blamed the deterioration of the company on the “misguided strategy” of the current board and that after having proposals rebuffed privately for several months, there was “no choice but to let shareholders decide the best outcome”.
The two co-founders said that if re-appointed, they would seek to return Superdry to “a design-led business” that would “reinvigorate” the brand.
Since Dunkerton resigned from the board of Superdry in March last year, the company and its shareholders, have suffered through two profit warnings and a weak set of third-quarter results in early February, as well as being the only retailer among its peers to report a fall in online sales for the autumn/winter period last year.