Superdry Secures £25 Million Lending Facility — Retail Bum

Superdry has secured £25 million through a secondary lending facility from Hilco Capital in an effort to fund its business turnaround plan.

The deal involves a 12-month loan term with an option to extend the loan at an interest rate of 10.5% plus the Bank of England base rate.

The loan from Hilco is in addition to the existing asset-backed lending facility Superdry received from Bantry Bay Capital. The brand expects it to help mitigate the headroom cap on its outstanding credit agreement.

Superdry’s move to secure an additional lending facility comes about three months after the company revealed a £35 million cost-reduction plan amidst a challenging environment that is negatively impacting consumer spending.

The company plans to save costs by optimizing its real estate and logistics and improving procurement and range reduction strategies. So far this year, the company has also closed eight franchise-operated stores in the U.K.

“The Superdry brand continues to evolve, but there is no doubt that the market conditions we face are challenging, compounded by the issues we have previously disclosed and are working to address in wholesale,” said founder and CEO Julian Dunkerton in April. “As a result, while we continue to deliver like-for-like…