admin Fashion retailer Superdry has secured a secondary lending facility of 25 million pounds from retail financing specialists Hilco Capital to help accelerate the implementation of its turnaround plan and cost reduction programme.
The facility with Hilco, which has provided loan facilities to large retailers, over the past 24 months, including French Connection and Gieves and Hawke, is for a 12-month term with the option to extend at an interest rate of 10.5 percent plus the Bank of England base rate.
The funding is in addition to the fashion brand’s existing asset-backed lending facility with Bantry Bay Capital and “will help mitigate the headroom cap on this outstanding credit agreement,” Superdry said in a statement.
Superdry continues to secure future with new funding
It follows an announcement in April where Superdry said it was seeking to reduce costs by 35 million pounds as part of its turnaround plan to tackle the ongoing “challenging trading environment” in the face of dampening consumer spending.
Superdry indicated that cost savings would be achieved through estate optimisation, logistics savings, better procurement and range reduction, and has seen the fashion retailer announcing the closure of eight of its franchise-operated stores in the UK this year.
The retailer also secured 12 million pounds in fresh funding in May generated by a share sale in which the company’s co-founder and chief executive Julian Dunkerton participated by increasing his stake in the business from 24.7 to 25.4 percent.
Superdry operates in more than 50 countries and has 219 physical stores and around 450 franchisees and licensees.
