Superdry negotiating £10m loan with Hilco - report

11th Mar 2024 12:01

(Sharecast News) - Struggling fashion retailer Superdry, which is in talks to be taken private by its founder, is reportedly negotiating an additional multimillion-pound loan with one of its existing lenders.

According to Sky News, 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 told Sky the discussions were not certain to result in an agreement but were at a detailed stage.

Superdry and Hilco both declined to comment to Sky.

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.

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 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.

At 1300 GMT, the shares were down 3.7% at 31.30p.