UK fashion retailer Superdry in talks with lender Hilco amid weak demand (updated)
11/03/2024 18:34
(Adds funding details, background)
March 11 (Reuters) - Superdry SDRY.L on Monday
confirmed that it was in talks with lender Hilco to provide
additional liquidity, as the struggling British fashion retailer
looks to navigate weak demand.
The company said it is in discussion to increase its lending
facilities by about 10 million pounds ($13 million) and an
additional 10 million pounds to meet seasonal working capital
requirements.
Superdry, which has been battling weak demand for its
jackets and clothing, also said discussions with Hilco include
an extension to the maturity date of its existing credit
facilities with the lender by about six months to Feb. 7, 2025.
In January, the retailer had reported a 13.7% drop in
group sales for the 12 weeks to Jan. 20 and said that it does
not expect market conditions to improve in the near term.
The company last month said its top shareholder and CEO,
Julian Dunkerton, was
looking
at options for the company that may include a cash offer
for the shares not already owned by him.
($1 = 0.7809 pounds)
(Reporting by Saikeerthi in Bengaluru; Editing by Maju Samuel)
((Saikeerthi@thomsonreuters.com;))