Superdry boss responds to ‘not cool’ criticism

Superdry boss responds to ‘not cool’ criticism

Superdry bosses have hit back at criticism the brand is “not as good as it used to be”.

Julian Dunkerton’s announcement comes as the company launches a major restructuring program aimed at ensuring the British retailer’s survival.

Mr Dunkerton told the BBC that the clothing brand was a “broad church” that appealed to a wide range of buyers.

However, on Tuesday the chain announced a range of cost-cutting measures, including a delisting from the London Stock Exchange.

The fashion business, which runs 216 stores as well as franchise stores, has been looking at ways to save money after a year of weakening sales and worsening losses.

Plans to cut costs include the firm looking at cutting rent on 39 UK stores, as well as raising money through the sale of new shares.

Superdry said it would be forced into administration if it did not go ahead with the plan.

Mr Dunkerton, chief executive and co-founder, said the announcement marked a “critical moment” in the company’s history.

But in an interview with the BBC shortly after the announcement, he said he was “confident” the move would see the “future of the brand secured”.

Not as cool as before?
The retailer, which began as a market stall in Cheltenham, was established by Mr Dunkerton and James Holder, and has gone on to enjoy great commercial success.

A delisting from the London Stock Exchange will help Superdry save cash and Mr Dunkerton’s time, the firm said on Tuesday.

It added the move would also allow it to carry out restructuring “away from increasing public market exposure”, although the business would need shareholders to approve its restructuring plan at its upcoming general meeting.

It hopes to implement its recommendations by July 2024, according to the provisional timetable.

But Peter Williams, the former chairman of Superdry, suggested on the BBC’s Today program that the move reflected “a brand that may not be as good as it used to be”.

“That’s the problem – because teenagers don’t necessarily want to shop where their parents used to shop and there’s a natural attrition of fashion brands going on,” he said.

Mr Dunkerton, who previously resigned from the board before returning to “steady the ship” in 2019, hit back, saying: “The reality is that the brand speaks to all people – it’s a very broad and necessary church.

“When you’re going through the ups and downs of a brand – actually having a diverse customer base is key,” he added, citing the success of sportswear giant Nike as an example.

Mr Dunkerton said he would personally support the equity raise, and said it showed his commitment “to making sure we save jobs and this brand which is a great British success story.”

He admits, however, that Superdry’s marketing may be more “showcased” to the younger shoppers it is trying to recruit by partnering with influencers and ramping up its social media marketing on Instagram and TikTok.

While the High Street brand was once worn by celebrities such as Justin Bieber and David Beckham, it is now favored by older men looking for practical clothes, according to Alice Price, associate apparel analyst at research firm GlobalData.

He suggested the firm’s problems mainly lie in its struggle to keep up with the latest trends and the prominent branding on some of its T-shirts and hoodies, which have fallen out of fashion.

Mr Dunkerton pointed out that it had different logo sizes added to different items, all “speaking to different demographics”, while 90s-style baggy jeans and cropped T-shirts were performing well with young people.

The fashion brand, known for its coats and hoodies, has seen its share price fall from more than 500p to just over 5p.

Superdry said it wanted to delist from the London market so it could carry out a restructuring “from increased public market exposure”.

As part of the recovery plan, it will also extend the maturity date of large loans and is looking to boost sales by improving its product range and reallocating marketing spend.

Despite spending to build relationships with celebrities such as Brooklyn Beckham and soccer star Neymar Jr, in the six months to the end of October, sales across the group fell 23.5% to £220m as consumer spending was squeezed and buyers may have been put off. heavier items of clothing due to “unseasonal” weather.

Many retailers have struggled with difficult conditions due to household budgets

The supply chain is under pressure following the Covid pandemic and the cost of living crisis.

“Ailing fashionistas need only look at the likes of Abercrombie and Hollister, which struggled to shake off their dated early 2010s aesthetic for years but have since enjoyed a successful recovery, having invested in refreshing their product range,” added Ms. Price. .

On Tuesday, boot maker Dr Martens announced its current boss Kenny Wilson