UK
Channel 4 to axe almost 250 jobs in biggest ever round of cutbacks
Hannah Boland
Mon, 29 January 2024
Channel 4
Channel 4 is poised to announce almost 250 job cuts this week after a slump in spending by advertisers.
The broadcaster is understood to be holding a company-wide meeting on Monday in which it is expected to lay out plans for what would be its biggest ever round of cutbacks.
The reduction would be equal to around 15pc of all staff, and a step up from initial plans.
Channel 4 was previously understood to be looking at axing 200 jobs, which would have been equal to the same amount in the wake of the financial crisis.
Details of the deeper-than-expected job cuts were first reported by Sky News.
The planned overhaul comes amid a sharp slump in spending on traditional TV ads, with chief executive Alex Mahon saying that revenues for 2023 will be between 8pc and 9pc below the previous year’s.
The broadcaster, which is publicly owned but commercially funded, is expected to post a deficit and is considering using its emergency £75m overdraft to shore up its finances.
Cuts are expected to centre on the traditional broadcast TV division, which has been hardest hit by advertisers reining in spending in the face of high interest rates and a slowing economy.
Channel 4 has already been forced to cut back its programming budget, which was at an all-time-high of £713m in 2022.
The current ad slump comes less than a year after Channel 4 avoided a government attempt at privatisation.
Ms Mahon recently said the industry is in “market shock” territory, with the downturn the worst since the financial crisis.
A spokesman for Channel 4 said the company was “having to deal with an extremely uncertain economy in the short term” and needed to accelerate the shift to become “a genuinely digital public service broadcaster”.
He added: “As a result, we need to continue to divest from our linear channels business and simplify our operations to become a leaner organisation.”
The spokesman said Channel 4 would share further details with its staff, partners and stakeholders soon.
Superdry restructure could mean store closures and job losses
Laura McGuire
Mon, 29 January 2024
The Superdry logo on a store in Brussels
Embattled British retailer Superdry is plotting a major restructuring which could see stores closed and jobs cuts after reporting weak sales.
Over the weekend, Sky News reported that the firm was working with PWC to deliver a turnaround plan, which could lead to a company voluntary arrangement (CVA).
Superdry confirmed reports this morning, telling the London market it is “working with advisors to explore the feasibility of various material cost saving options”.
The board said: “Whilst there is no certainty that any of these options are progressed, they aim to build on the success of the cost saving initiatives carried out by the company to date and position the business for long-term success.”
Today’s developments come one week after the retailer posted a 23.5 per cent decline in revenues during the half year, blaming wet weather for the slide.
But the firm, which has 98 stores across the UK, has been struggling to keep its head above water for months, launching a number of schemes to shore up extra costs.
Back in October, it signed a joint venture with Reliance Brands Holding UK Ltd (RBUK) for the sale of its intellectual property in South Asia, in its latest bid to boost funds.
It mirrored an agreement announced by Superdry in March to sell the intellectual property of its Asia Pacific offering to South Korean retail group Cowell Fashion Company for $50m (£40m).
On Friday, chief of the firm Julian Dunkerton, admitted it was a difficult period for Superdry.
He said: “A challenging consumer retail market, set against a backdrop of macroeconomic uncertainty and some remarkably unseasonal weather conditions have all combined to weaken the financial performance of the group.”
Charlie Huggins, head of equities at the Wealth Club, said Superdry has no option but to take a knife to costs.
“Closing less profitable or loss-making stores makes sense to create a smaller, but more profitable enterprise,” he said.
“However, cost cutting can only go so far. At some point they need sales to start moving in the right direction which will need the brand to be revitalised. That will be a much more difficult task.”
Superdry considers store closures as part of cost-cutting plan
Jasper Jolly
Mon, 29 January 2024
Photograph: Britpix/Alamy
Superdry has confirmed it is considering a significant round of cost-cutting as the struggling fashion retailer contends with slumping sales.
The British brand is drawing up plans for potential store closures and job cuts after it reported last week that sales dropped by nearly a quarter in the six months to October. The delayed results were accompanied by the appointment of a new finance boss, the fifth in five years.
The company, which has about 3,350 staff and more than 215 stores, on Monday said it had hired “advisers to explore the feasibility of various material cost saving options.”
Laura McGuire
Mon, 29 January 2024
The Superdry logo on a store in Brussels
Embattled British retailer Superdry is plotting a major restructuring which could see stores closed and jobs cuts after reporting weak sales.
Over the weekend, Sky News reported that the firm was working with PWC to deliver a turnaround plan, which could lead to a company voluntary arrangement (CVA).
Superdry confirmed reports this morning, telling the London market it is “working with advisors to explore the feasibility of various material cost saving options”.
The board said: “Whilst there is no certainty that any of these options are progressed, they aim to build on the success of the cost saving initiatives carried out by the company to date and position the business for long-term success.”
Today’s developments come one week after the retailer posted a 23.5 per cent decline in revenues during the half year, blaming wet weather for the slide.
But the firm, which has 98 stores across the UK, has been struggling to keep its head above water for months, launching a number of schemes to shore up extra costs.
Back in October, it signed a joint venture with Reliance Brands Holding UK Ltd (RBUK) for the sale of its intellectual property in South Asia, in its latest bid to boost funds.
It mirrored an agreement announced by Superdry in March to sell the intellectual property of its Asia Pacific offering to South Korean retail group Cowell Fashion Company for $50m (£40m).
On Friday, chief of the firm Julian Dunkerton, admitted it was a difficult period for Superdry.
He said: “A challenging consumer retail market, set against a backdrop of macroeconomic uncertainty and some remarkably unseasonal weather conditions have all combined to weaken the financial performance of the group.”
Charlie Huggins, head of equities at the Wealth Club, said Superdry has no option but to take a knife to costs.
“Closing less profitable or loss-making stores makes sense to create a smaller, but more profitable enterprise,” he said.
“However, cost cutting can only go so far. At some point they need sales to start moving in the right direction which will need the brand to be revitalised. That will be a much more difficult task.”
Superdry considers store closures as part of cost-cutting plan
Jasper Jolly
Mon, 29 January 2024
Photograph: Britpix/Alamy
Superdry has confirmed it is considering a significant round of cost-cutting as the struggling fashion retailer contends with slumping sales.
The British brand is drawing up plans for potential store closures and job cuts after it reported last week that sales dropped by nearly a quarter in the six months to October. The delayed results were accompanied by the appointment of a new finance boss, the fifth in five years.
The company, which has about 3,350 staff and more than 215 stores, on Monday said it had hired “advisers to explore the feasibility of various material cost saving options.”
It added: “While there is no certainty that any of these options are progressed, they aim to build on the success of the cost saving initiatives carried out by the company to date and position the business for long-term success.”
Monday’s announcement came in response to a report on Saturday by Sky News saying Superdry was considering a significant number of store closures and job cuts with the consultancy PwC. Those cuts could come as part of a company voluntary arrangement or a restructuring, either of which would involve Superdry working with creditors to try to make its debts manageable.
Superdry’s market value has slumped in recent years. Its share price reached £19 in 2017, but was just 17p on Monday, giving it a value of £17.5m.
Julian Dunkerton co-founded Superdry in 2003 as a market stall in Cheltenham, growing it into one of the most successful names on the UK high street selling T-shirts, jeans and coats.
However, Superdry has struggled in recent years, and has gone through a turbulent few years after Dunkerton left before forcing his way back in a 2019 boardroom coup.
In recent months, Superdry has blamed its poor sales on the general weakness of the fashion market, with deep discounting by rivals, as well as milder weather that has prevented people from spending on winter items such as coats.
The company on Monday emphasised that it is already looking at steep cost cuts, with £40m already earmarked, compared with a previous aim of £35m. It said it had already made £20m of those cuts.
Superdry looks at ‘cost-saving options’ after potential store closure reports
Henry Saker-Clark,
PA Deputy Business Editor
Mon, 29 January 2024
Troubled fashion brand Superdry has said it is looking at various “cost-saving options” after reports it is considering a major restructuring which could include store closures and job cuts.
On Saturday, Sky News reported that Superdry is working with advisers at PwC on a plan which could lead to a CVA (company voluntary arrangement) or another form of restructuring.
Such a move could result in store closures and potentially force through rent reductions with landlords.
On Monday, Superdry told the stock market: “In line with the company’s turnaround strategy, the company confirms it is working with advisers to explore the feasibility of various material cost-saving options.
Mon, 29 January 2024
Troubled fashion brand Superdry has said it is looking at various “cost-saving options” after reports it is considering a major restructuring which could include store closures and job cuts.
On Saturday, Sky News reported that Superdry is working with advisers at PwC on a plan which could lead to a CVA (company voluntary arrangement) or another form of restructuring.
Such a move could result in store closures and potentially force through rent reductions with landlords.
On Monday, Superdry told the stock market: “In line with the company’s turnaround strategy, the company confirms it is working with advisers to explore the feasibility of various material cost-saving options.
Superdry co-founder and chief executive Julian Dunkerton (Superdry/PA)
“Whilst there is no certainty that any of these options are progressed, they aim to build on the success of the cost-saving initiatives carried out by the company to date and position the business for long-term success.”
It comes days after the firm revealed a sharp slump in sales over the half-year to October and warned shareholders its fortunes could still take some time to turn around.
On Friday, the clothing firm said that its revenue had fallen by nearly a quarter (23.5%) to £219.8 million in the six months to the end of October, with adjusted loss nearly doubling to £25.3 million.
The retail business, which employs around 3,350 globally, said it also cut around £20 million in costs over the half-year and is on track for over £40 million in savings for the current year.
This saw the business close 12 stores over the first half of the financial year, taking its estate down 216 owned stores. The company also runs shops through franchisees.
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