Fashion chain Superdry has confirmed it is in talks with a US hedge fund over a lending facility as the business faces an uncertain future.
The Gloucestershire-headquartered clothing retailer warned in October of "tough times ahead" due to inflation and said there was a “material uncertainty” over the future of its business with a £70m loan facility set to expire in January.
On Monday, the company confirmed a Telegraph report that said it is trying to secure funding from Bantry Bay Capital, which is backed by US activist investor Elliott Advisors.
The business said in a statement: “Superdry acknowledges recent press speculation about its previously announced refinancing process and confirms that it is in negotiations with Bantry Bay Capital, the specialist lending provider, to replace the existing up to £70m asset-backed lending facility."
Superdry said there was no certainty of an agreement, however, and it would make a further announcement “when appropriate”. It also said it remained "in discussions with other lenders".
Over the weekend, the Telegraph reported the discussions between Superdry and Bantry Bay were "advanced" and a deal could be agreed this week - but nothing is confirmed yet, according to the fashion retailer.
It comes just over a month after a warning from chairman Peter Sjolander which accompanied what was otherwise a strong set of results for the business.
He said: “We have had positive discussions with prospective lenders but at this point we have not yet secured committed funding beyond January.
“The directors acknowledge that, until these discussions conclude, a material uncertainty exists around the going concern of the group, although we remain confident of a positive outcome.”
The company returned to profit in the year to April, moving from a pre-tax loss of almost £37m to a profit of £18m. Revenue rose by nearly a tenth to just under £610m in the same period as shops reopened again after the pandemic.
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