Superdry announced on Monday that it is engaging in discussions with lender Hilco to secure additional funding, aiming to address the challenges posed by demand in the British fashion market.
The company is exploring options to boost its lending facilities by approximately £10 million (US $ 13 million) and secure an extra £10 million to fulfill seasonal working capital needs. As Superdry grapples with decreased interest in its jackets and apparel, talks with Hilco also involve extending the maturity date of its existing credit facilities by around six months until 7th February 2025.
Following a 13.7 per cent decline in group sales for the 12-week period ending 20th January, Superdry expressed a cautious outlook, foreseeing continued challenging market conditions in the future. The retailer’s major shareholder and CEO, Julian Dunkerton, recently disclosed plans to explore various options for the company, potentially including a cash offer for outstanding shares.
Moving forward, Superdry aims to streamline operational costs while revamping its struggling wholesale division catering to department stores and independent retailers facing their own challenges. Recognizing the limitations of centralizing overseas wholesaling at the Cheltenham headquarters, Dunkerton is placing trust in local agents, particularly in key European markets like Germany, to drive growth and improve operational efficiency.
