Superdry is seeking an additional £20million of liquidity from a key lender, as the fashion brand struggles to implement a turnaround plan amid weak demand.
The group told shareholders on Tuesday it was in talks with turnaround specialist Hilco over an increase to its lending facilities of ‘approximately’ £10million for ‘necessary additional liquidity headroom to help facilitate the implementation of its ongoing turnaround plan and cost reduction programme’.
Superdry is also seeking an additional £10million to ‘assist with seasonal working capital peaks’ and a six-month extension to the maturity date of its existing facilities with Hilco through to February next year.
Superdry seeks liquidity boost with extension to its loan facilities
The debt, should a deal be made, will be on top of a £25million emergency loan facility agreed with Hilco in 2023, which sees Superdry pay an interest rate of 10.5 per cent plus base rate. Superdry also has an £80million facility with Bantry Bay Capital.
Superdry shares fell 6.2 per cent to 29p in early trading, bringing losses over the last 12 months to around 74 per cent.
The retailer, which employs about 3,350 people across the world and runs 216 shops alongside franchised stores, has endured challenging trading in recent years. It has posted just one year of profitability since 2020.
Its finance chief Shaun Wills steps down at the end of March after the group posted an adjusted pre-tax loss of £25.3million for the six months to 28 October, up from a £13.6million loss last year.
Superdry, known for the Japanese graphics on its t-shirts and hoodies, saw revenues plummet 23.5 per cent to £219.8million over the period.
The group has been looking into various ‘cost-saving options’ amid reports it has been considering a restructure. This could include store closures and job cuts.
Chief executive and top investor Julian Dunkerton is currently weighing options for Superdry, which could see him make a cash offer for the shares he does not already own.
Superdry shares were handed a rare boost at the end of February as it emerged New York investment management firm Davidson Kempner is in discussions with Dunkerton over potentially backing a deal to take the brand private.
It is understood that talks are at a ‘preliminary stage’ and there is no guarantee of an agreement.
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