Struggling Superdry in talks to tap Hilco for new £10m loan

Business

Superdry, the struggling fashion retailer which is in talks to be taken private by its founder, is negotiating an additional multimillion-pound loan with one of its existing lenders.

Sky News has learnt London-listed Superdry is discussing a new facility with Hilco to borrow £10m or more as it seeks new financial headroom amid a steep downturn in trading.

The talks between the clothing retailer and Hilco are on top of more than £100m of existing debt, the majority of which was extended by Bantry Bay.

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

Superdry and Hilco both declined to comment.

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Last month, Sky News revealed the US investment firm Davidson Kempner was among the firms talking to Superdry founder Julian Dunkerton about backing his prospective offer for the chain.

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Davidson Kempner has previously backed Jojo Maman Bebe and Oak Furnitureland, and also held a slug of debt in New Look.

Superdry recently confirmed to the stock market that Mr Dunkerton wanted to buy the majority stake in Superdry that he does not already own, even as the company draws up plans to close stores and cut jobs.

Mr Dunkerton, who in 2019 returned to the company having previously been ousted, owns just under 30% of the shares.

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On Monday, shares in the retailer were trading at around 21.5p, giving it a market capitalisation of around £30m.

In recent months, Superdry has raised cash by offloading its brand in regions including India and Asia-Pacific.

Late last year, its shares sank to a record low after it blamed abnormally mild autumn weather for weak sales.

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