Cheltenham-based Superdry is working on new cash saving plans, following disappointing sales.

The fashion brand and advisers at PricewaterhouseCoopers (PwC) are starting work on plans which could lead to a company voluntary arrangement (CVA) or restructuring plan, as reported by Sky News.

This could lead to store closures and job loess, as well as forcing rent cuts with landlords.

Superdry has more than 215 stores and 3,350 staff, of whom around 700 work at the company's Cheltenham HQ.

This latest news follows the announcement on Friday (January 26) that finance chief, Shaun Willis, is to step down in March. 

Half year results, also published on Friday, for the 26 weeks to October 28, show sales were down 23.5% on the same period last year, from £287.2m to £219.8m.

Superdry said trading was hit by the challenging consumer market, unseasonal autumn weather and the underperformance of its wholesale business.

The business said it is set to deliver at least £40m in savings this financial year, ahead of the initial target of £35m, with more than £20m savings already achieved in the first half.

Last year, Superdry secured up to £25m in funding from restructuring specialist Hilco Capital to help fund its turnaround plan. This is on top of its existing £80m asset-backed loan with Bantry Bay Capital.