Fashion retailer Superdry has secured a new £80m loan facility ahead of a January deadline, but warned of “extremely challenging” market conditions.
The fashion retailer had warned in October that a “material uncertainty exists” as to whether it would remain as a going concern while it negotiated a new credit facility.
Yesterday it announced it had agreed a new £80m facility including a £30m three-year lon with specialist lender Bantry Bay Capital, backed by Elliott Advisors, although it noted it would have to pay higher interest on the new facility.
Co-founder and chief executive Julian Dunkerton said: “I’m pleased with the performance of the business over the half. It’s been well documented that conditions are extremely challenging, which weren’t helped by the unseasonably warm weather in October and into November.
“However, by combining great product with affordable prices, we managed to grow sales in the first half. Our AW22 collection has been really well received by customers, especially our jacket range and party dresses, and it’s great to see store sales recovering well.
“I am also encouraged with how we have started the second half, which has seen our biggest ever week for ecommerce orders driven by a return to record levels of jacket sales over the Black Friday period and good momentum through the recent spell of colder weather.
“That said, we are under no illusions that consumer confidence is fragile and that the picture is unlikely to change quickly. We are very pleased to have completed our refinancing and this, combined with the continued strengthening of our brand and product, means the business is in good shape as we trade through our important Christmas trading period.”
The retailer also provided a trading update for the 26 weeks to October 26, 2022. Sales jumped 3.6% year on year during the period, driven by a strong 14.4% uplift in store revenues.
Ecommerce sales inched up 1.7%, while wholesale revenues were down 5.2%.
As of December 20, Superdry had circa £13m of debt, a £25m improvement on October 1.
- Get the latest fashion news and analysis straight to your inbox – sign up for our weekly newsletter
No comments yet