Superdry co-founder Julian Dunkerton says going private will result in significant cost and time savings. Photo: Superdry
The founder of Superdry said he was not concerned that the retailer was increasingly being seen as a «daddy brand» as he prepared to take the business private.
Julian Dunkerton said he had «no shame» in reaching out to older customers after the company was forced to embark on a major restructuring program following a sales slump.
The reorganization will see the business exit the London Stock Exchange as Mr Dunkerton tries to save the business he started with a market stall in Cheltenham in 2003.
He said: “I no shame on me, I have a 50-year-old consumer and I have a 16-year-old.”
This announcement marks the latest chapter in the history of Superdry, which began life as Mr. Dunkerton Cult Clothing.
As the brand grew, Superdry clothing became popular among millennials. However, over the past decade it has developed an association with older male shoppers.
Mr Dunkerton, the company's chief executive, said the brand's recent failure to modernize was due to excess inventory.
He said: “The fact is that we had to deal with 19 million items of clothing, and we gradually reduced them.”
“But if you release three million pieces of clothing into a market that is old and historic, it will damage your brand and stunt your growth.
“We are almost at the point where we need to focus on creating new products and moving forward».
His comments come after the fashion retailer said on Tuesday it would end its «increased exposure to public markets» in July, which has been hit by weak sales and soaring costs.
Superdry's revenue fell by almost a quarter (23.5%) to £219 million in the six months to the end of October last year.
Mr Dunkerton added: “We are in a very turbulent and challenging situation. The speed of decision-making required and the cost of being on public markets don't make sense.»
Shares in the retailer have fallen more than 80% in the last six months, meaning the business is now worth just £6 million.
Mr Dunkerton added: “[Being public] takes up a lot of my time and costs me a lot. The cost savings from exiting the stock market are huge and will help ensure the long-term prosperity of this company.
“If you just charge an audit fee, we're talking about millions of pounds. I just wouldn't have to do it in a private environment.»
The decision to leave the London Stock Exchange is part of a package of measures designed to help avoid Superdry falling into administration.
< p>The company plans to raise capital by £10 million and undertake a major restructuring that will see around 39 of its 90 stores receive steep rent cuts.
Loans from investment firms Bantry Bay and Hilco will also be extended.
Jonathan De Mello, founder of retail consultancy JDM Retail, said: “Superdry urgently needs to restructure its property portfolio. and it’s good that they are finally doing it.”
“In their quest for expansion, when they were performing well, they signed expensive leases for large properties. As sales and profits have fallen, many of their stores are now trading at unattainable levels.»
Mr Dunkerton also criticized ministers for allowing Chinese online retailers such as Shein to undercut domestic rivals .
He criticized a so-called tax loophole through which Shein benefits by sending small packages directly from China.
Mr Dunkerton said: «I think it is an absolute disgrace that we allow a company to import around £1 billion worth of individual products into the economy and not tax them.»
>
His criticism came in the moment when Shane was considering the possibility of listing shares in London.
Mr Dunkerton added: “I have no objection to being included on the list. What worries me is the economic model of disrupting businesses. Are we going to allow another large company to avoid paying UK tax and undermine the incumbents? I think this is completely irrational.»
In response to similar criticism earlier this year, a Shein spokesman said: «Shein's success comes from our ability to produce fashion products for our customers.
“We maintain affordable prices through our on-demand business model and flexible supply chain. This reduces inefficiencies, eliminates material waste, and reduces unsold inventory. We pass this advantage on to our customers, and it fuels our growth.”
Свежие комментарии