Superdry reportedly mulling 10 million pound loan from Hilco

Struggling British retailer Superdry is believed to be mulling a new 10 million pound borrowing facility with lender Hilco as it continues to seek funding amid an ongoing turnaround plan.

The company, which is also currently in talks to go private, is said to be looking to borrow 10 million pounds or more from Hilco, while further negotiating an additional loan with an existing lender.

This is according to Sky News, which cited city sources who said that while such discussions were not currently certain of a result, they were at a “detailed stage”.

In early February, Superdry founder Julian Dunkerton confirmed the company’s intention to initiate a buyer exploration after the appointment of administrators assigned 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, however, 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.