Superdry in talks with Hilco for new £10 million loan

Superdry is understood to be negotiating an additional multimillion pound loan with one of its existing lenders.

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 or more as it seeks new financial headroom amid a slump in trading, according to Sky News.

The loan will sit on top of more than £100 million of existing debt, the majority of which was extended by Bantry Bay.

City sources told the publication that the discussions were not certain to result in an agreement but were at a detailed stage.

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.

This story has been updated, click here.