Apparel brand Superdry has confirmed it is in discussions with financial services company Hilco regarding additional funding to support its turnaround efforts.
The British retailer is seeking to increase its lending facilities by approximately £10 million (US$12.8 million) for the implementation of its ongoing turnaround plan and cost reduction program.
The company is also asking for another £10 million to assist with seasonal working capital, as well as an extension to the maturity date of its facilities with Hilco by six months to February 7, 2025.
Last month, Superdry co-founder Julian Dunkerton was reported to be in talks with alternative investment management firm Davidson Kempner about backing an offer for the fashion label.
Dunkerton was also in discussions with Retail Realisation – backed by the founder of turnaround investor Rcapital – among some other firms regarding a potential bid to take the brand private.
According to Reuters, the brand reported a 13.7 per cent drop in group sales for the 12 weeks ended January 20 and said it does not expect market conditions to improve in the near term.
