Superdry to close eight franchise-operated stores in the UK

Superdry has confirmed that it will be closing eight of its 104 stores in the UK this year with all stores affected operated by a franchisee.

The British lifestyle and apparel retailer confirmed in a statement that the stores, operated under licence, were in the process of closure. Branches affected include Stoke On Trent, Ipswich, Luton, Telford, and Lincoln, which have already been closed. With three more set to close including Bury St Edmonds and two further locations.

Superdry said the process was unrelated to a wider cost-cutting initiative launched earlier this year as it seeks to strengthen its balance and said its directly owned stores were not affected.

“The majority of Superdry’s stores in the UK are operated directly by Superdry and there are no plans to close any of them at the present time,” the company said.

In May Superdry raised £12 million from a share issue to help shore up its finances with the company's founder and CEO Julian Dunkerton supporting the fundraise by upping his personal stake in the business from 24.7% to 25.4%.

Other action taken by the business as part of its turnaround plan include the sale of its IP assets in certain Asian territories to South Korea's Cowell Fashion Company for £40.7 million, as well as a £35 million cost-cutting exercise.

At the time the cost-cutting was announced, Dunkerton explained that wholesale had been challenging for the brand but that it had continued to deliver like-for-like retail sales growth. "[...] we need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base," Dunkerton said at the time.