Superdry confirms speculation surrounding new lending facilities

British retailer Superdry has confirmed that it is mulling a new lending facility after media reports began circulating regarding the possibility of such a decision.

The struggling company, which is also currently in talks to go private, was at the centre of speculation in recent days regarding the possibility of a new 10 million pound loan from lender Hilco amid an ongoing turnaround plan.

Confirming reports, Superdry said that it has been in discussions with the financial services firm to increase its lending facilities by around 10 million pounds.

In a regulatory filing, the retailer stated that the goal was to secure “necessary additional liquidity headroom to help facilitate the implementation of its ongoing turnaround plan and cost reduction programme”.

In addition to this, it is also mulling a further 10 million pounds to “assist with seasonal working capital peaks to the extent required”, while attempting to further extend the maturity date of its facilities with Hilco by six months to February 7, 2025.

Superdry noted that there was “no certainty that such changes will be agreed”.

In early February, Superdry founder Julian Dunkerton confirmed the company’s intention to initiate a buyer exploration after appointing administrators to oversee cost-saving options.

The retailer had been struggling in the backdrop of a challenging environment, facing falling sales over the past year, including a 23.5 percent drop in its most recent half-year update.

As such, speculation began mounting about Dunkerton’s possible plans to take the company private, with US investor Davidson Kempner said to be among those having shown interest in aiding with the move.

Discussions surrounding a potential offer had not come soon enough though, and in the beginning of March, the London Stock Exchange said it would grant Superdry an extension of its PUSU deadline, allowing Dunkerton to continue with discussions surrounding either a buyout or funding.