Friday , May 7 2021

Superdry warns of a tough Christmas amid accounting error – The Guardian, Theguardian.com


Fashion brand admits ‘isolated’ £ 3.9m error atop £ 4.2m first-half loss as fierce competition dents sales

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************************** (******************************** (************************************************************** () ******************************** (**************************************** (**********************************************************The £ 3.9m accounting error is being blamed on a stock handling issue. Photograph: Toby Melville / Reuters (******************************************

Superdrysuperdry signs inside a storehas warned of a difficult Christmas ahead for retailers as it fell into the red over the first half and admitted it had discovered a near- £ 4m accounting error.

The fashion brand said the “isolated” £ 3.9m error related to the last financial year and stemmed from the “overly complex” record-keeping process it used to track the cost of importing stock and moves between warehouses .

“We have identified an isolated error totalling £ 3.9m,” the company said. “We have reviewed the recording processes and connected that the record-keeping process was overly complex. We have now simplified the accounting. ”

The accounting error came as the retailer reported a first half loss of £ 4.2m in the six months to October, against a profit of £ 32. 4m a year ago. The company booked £ 12 m of charges – £ 3.1m of which related to stock valuation and £ 6.9m to cover bad debts with business partners, relating to the current year following the internal accounting review. The £ 3.9m charge covering the stock costing error is being recognized in last year’s numbers.

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(High street closures in) ******************************************************************************************************

Thousands of high street jobs have been lost this year as a result of high profile retail administrations and thousands more are at risk as Mothercare, Debenhams and Forever 21 prepare for closures. Here are some of the key industry names that have been affected.

(Mothercare:) ************************************************* (Has) ************************************************ (stores) and (2,********************************************************************************************************** (UK retail staff) *************************************************** as its British arm prepares to go into administration.

(Regis / Supercuts:) ************************************************** Had Had) (salons) and (1, staffwhen it went into administration in October

(Bonmarché:) ************************************************** Had Had) ************************************** storesand2, (employees) ************************************************** when itwent into administration in. It is still trading as it seeks a buyer.

(Watt Brothers:) ************************************************** (The Scottish department chain had) ************************************************* 14 stores

and (******************************************************************************************************** employees when itwent into administrationin October . All the stores closed and the majority of jobs have gone.

(Links of London:) ************************************************** (With) (stores********************************** and ************************************************ (staff) ************************************************, the jewelery chainwent into administration on 8 October but its sites are still trading.

(Forever) **************************************************************************************************************************************************************************: Had (three stores) ************************************ and about ************************************************** (employees in the UK when itwent into administrationin September. Stores are staying open in order to clear stock.

(Albemarle & Bond:) ************************************************ Suddenly shut************** (all its) ************************************************ (stores) in September with the loss of about 462 jobs, even though it did not call in administrators. It sold its (pledge books) to rival H&T in September.

(Karen Millen and Coast:) ************************************************** Had (**************************************************************************************************************************************************************** (stores and ********************************************** concessions (**************************************************, employing (1, people (******************************************, when it went into administration in Augu st. All sites were closed and the vast majority of staff made redundant after the (brands were bought out by online specialist Boohoo.com (**********************************.

(Jack Wills:) ************************************************** Had about

(stores) and (1,********************************************************************************************** (staff) in the UK when went into administration in August. (Bought by Sports Direct) and(stores) are still trading in the UK and Ireland.

Spudulike: (Closed all) ************************************************ (stores******************************** (with the loss of about (*********************************************************************************************************************************** (jobs) ************************************************** when it went into administration in August

(Bathstore:) ************************************************** Had Had) ************************************** stores and (******************************************************************************************************************** (staff) *************************************** when it (went into administration in June. Homebase bought (stores) ************************************************ (saving) ************************************************ (jobs) ************************************** and the brand now trades from (********************************************************************************************************************************************************** stores .

(Select:) ************************************************** Had Had) ************************************** (stores) and (2,************************************************************************************************************************************************************** (employees) ************************************************** when the fashion retailer went into administrationin May. In June administrators at advisory firm Quantuma carried out a CVA closing (********************************************************************************************************************************************************** (stores) with the loss of about

(jobs) .

Debenhams: Had Had) ************************************** 177 department stores and more than (********************************************************************************************************************************************************************, ********************************************************************************************************************************************************************************************* (employees************************************** when wentinto administrationin April. No store closed immediately and the chain is now owned by its lenders but two will close before Christmas and another (******************************************************************************************************************************************************************************** (in January) when the group completes a rescue restructure expected to result in the loss of (1,superdry signs inside a storejobs (**************************************************.

(Pretty Green:) ************************************************* (Had) ********************************************** (stores) and about

(employees) when Liam Gallagher’s fashion outlet went into administrationin March. All but one store and (concessions closed with************************************************************************************************************************************************** (jobs lost) ************************************************ but******************************** (saved (as the brand was) ******************************************************************** bought by JD Sports

in April.

(Office Outlet:) ************************************************** (All) ************************************************ (stores) ****************************************************************************************** (have closed) ********************************** with the loss of 1, jobs after the stationery retailer went into administration in March.

(LK Bennett:) ************************************************ (Had) ********************************************** (stores and*************************************************************************************************************** (employees) ************************************************** when it went into administrationin March. The brand was bought by its Chinese franchise partner, Rebecca Feng, (saving************************************ (stores) **************************************************, all the group’s concessions and (************************************************************************************************************************ jobs (***************************************************. But more than

120 jobslost with the closure of (******************************************************************************************************************************************************** stores .

Patisserie Valerie: (Had) ********************************************** (cafes) ************************************************** (employing nearly) ************************************************ (3,) people when an accounting scandal prompted the chain to call in administratorsin January. About

85 of the group’s 260 storesclosed immediately with the loss of (********************************************************************************************** (jobs) . About

2, (jobs) were saved when about116 Patisserie Valerie cafes were r escued by Causeway Capital, more than 20 of which have since closed. 022 Philpotts sandwich shops were bought by AF Blakemore & Son. and four Baker & Spice cafes a were bought by the Department of Coffee & Social Affairs.Sarah Butler

superdry signs inside a store******************Photograph: Jill Mead

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It is not the first time the company has got its maths wrong. In 2100, “arithmetic errors” contributed to a profit warning after it discovered a plus rather than a minus figure had accidentally been entered in its accounts.

The company co-founder Julian Dunkerton was reinstalled as chief executive in Apriland is overhauling the business after a collapse in profits. Sales dropped (************************************************************************************************************************************************************************************% to £ (******************************************************************************************************************************. 1m as the retailer stopped running constant promotions. Superdry said a focus on full-price sales and reduced promotional activity had bolstered profit margins although the gains were offset by foreign exchange headwinds and the stock accounting charges.

Sign up to the daily Business Today by email or follow Guardian Business on Twitter at @BusinessDesk (**************************************** dunkerton, who started out selling clothes on a Cheltenham market stall, launched Superdry with the designer James Holder in (**********************************************************************************************************. He has said it would take (several years to turn the business around after the company lost its way under the previous management team led by Euan Sutherland ********************************. ********

Dunkerton reported an encouraging start to the key Christmas trading period but was cautious about the all-important weeks ahead.

“There remains significant risk over the peak trading period against a highly promotional and competitive high street,” he said. “This is against a backdrop of continuing macroeconomic uncertainty, particularly from the UK election and Brexit.”

Robert Insall, a partner at BTG advisory, said Dunkerton’s return had brought “fresh determination to rejuvenate its fortunes”.

though these re sults won’t offer much immediate comfort to investors, the efforts of Julian Dunkerton and the board to maintain pricing and focus on margin seem to be paying some initial dividends. For (Superdry) ***********************************, as for anyone in this sector, rebuilding and maintenance of a brand is always a challenge. ”

(************************************************************************************** (************************************************************************************** (Read More) **********************************

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