Superdry confirms talks with Hilco for new £20 million loan

Superdry has confirmed that it is negotiating an additional multimillion pound loan with one of its existing lenders to "help facilitate the implementation of its ongoing turnaround plan".

The struggling fashion brand, which is in talks to be taken private by its founder, is discussing a new facility with Hilco to borrow £10 million as it seeks new financial headroom amid a slump in trading.

It is also requesting an additional £10 million to assist with seasonal working capital peaks, and an extension to the maturity date of its facilities with Hilco by six months to 7 February 2025.

The loan will sit on top of over £100 million of existing debt, the majority of which was extended by Bantry Bay, according to Sky News.

"Superdry confirms that it is in discussions with Hilco over an increase to its lending facilities by approximately £10 million 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 £10 million 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 7 February 2025," reads a statement from Superdry, which also notes that there is no certainty that such changes will be agreed.

Julian Dunkerton, Founder of Superdry

Last month, US investment firm Davidson Kempner was among the firms speaking to Superdry founder Julian Dunkerton about backing his prospective offer to take the brand private.

Superdry confirmed that Dunkerton wanted to purchase the majority stake in the company that he does not already own.

Dunkerton already owns roughly 26% of the business. In 2015, he stood down but returned in a dramatic boardroom coup in 2019, stating that he was unhappy with the direction it was taking.

He has since set about trying re-establish the brand as a label of choice for fashionable and sustainably minded young consumers.

However, Superdry hired advisers from PwC to examine debt-raising options earlier this year. This came just weeks after the brand's shares sank to a record low, blaming an "abnormally mild autumn" for delaying outerwear sales and causing a "challenging trading environment".

Superdry continues to take steps to strengthen its balance sheet, such as modest equity raises and brand licensing deals in Asia-Pacific and India, as it explores further options for the business.