Superdry secures £25m funding from Hilco

Superdry has received a secondary lending facility of £25 million from restructuring and refinancing business Hilco Capital to help fund its turnaround and cost reduction programme.

The latest funding comes in addition to the fashion brand's existing asset backed lending facility with Bantry Bay Capital and "will help mitigate the headroom cap on this outstanding credit agreement," Superdry said. The agreement is for 12 months with an option to extend and comes with an interest rate of 10.5% plus the Bank of England base rate on the drawn element.

It follows on from a £12 million fundraise in May generated by a share sale in which the company's co-founder and CEO Julian Dunkerton participated upping his stake in the business from 24.7% to 25.4%.

The share sale followed on from an announcement from Superdry in April that the business was seeking to reduce costs by £35 million in the face of dampened consumer spending.

Superdry said at the time that the savings would come through actions such as “estate optimisation”, which could indicate store changes or closures, logistics and distribution savings, and continuing to reduce its clothing range.

The savings are expected to be made by the end of the 2024 financial year with costs to achieve them falling this year.

It was recently revealed that the company would be closing eight franchise-operated stores this year but this move was not thought to be part of the wider cost-cutting programme.