Superdry shares fell 11% on Tuesday after the group warned over its future amid the pandemic.
In the 11 weeks to 9 January, revenues fell 52% as stores closed amid new restrictions. In the six months to 24 October, the company posted a pre-tax loss of £18.9m, compared to the £4.2m loss a year previously.
Superdry co-founder said: “Covid-19 has brought substantial challenges to Superdry as with many other brands, and this has continued through the first half and into the second with renewed lockdowns in our key markets.
“While revenue and underlying profit have been impacted by the external conditions, the brand has continued to focus on the reset, however, with over 70% of stores currently closed and having to shut a significant number over peak, it will take time to see the benefits of all our hard work flow through to the results.”
In a statement, the retailer said: “The group directors noted that the risks set out … indicate that a material uncertainty exists and may cast significant doubt on the group’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.”
Net cash reserves remained strong over the year and stood at £54.8m as of 9 January.
“We continue to have a total of over £130m of available liquidity at hand. Our £70m asset-backed lending facility remains available, having not been used in the year to date, and is currently still undrawn,” said the retailer.
The board has not declared an interim dividend.