Embattled fashion retailer Superdry is reportedly having discussions with one of its existing lenders, Hilco, to negotiate a new multimillion-pound funding facility.
Superdry confirmed today in a statement published on the London Stock Exchange that it is in talks with Hilco to borrow £20m as it seeks fresh funding to support its turnaround.
This comes after Sky News first reported that discussions were at a “detailed stage”, despite a lack of certainty that they would result in a deal.
The talks come on top of Superdry’s existing debt of more than £100m with Hilco, the majority of which was extended by specialist lender Bantry Bay.
Superdry said in a statement: “Superdry plc notes media speculation concerning additional lending facilities with Hilco.
“Superdry confirms that it is in discussions with Hilco over an increase to its lending facilities by approximately £10m to provide the company with necessary additional liquidity headroom to help facilitate the implementation of its ongoing turnaround plan and cost-reduction programme, along with an additional £10m to assist with seasonal working capital peaks to the extent required, and an extension to the maturity date of its facilities with Hilco by six months to February 7, 2025.
“There is no certainty that such changes will be agreed.”
The news comes after the deadline for Superdry co-founder Julian Dunkerton to make an offer to buy back the struggling fashion brand was extended earlier this month to 5pm on March 29, 2024.
Dunkerton, who currently owns around a 20% stake in the business, is “exploring the possibility of making an offer for the company” and is in talks with potential financing partners.
Uncertainty continues to surround Superdry after it was revealed in January that the business was considering a restructuring and working with advisers at PwC on its options.
Superdry also announced the departure of chief financial officer Shaun Wills earlier this year and issued another profit warning at the end of January.
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