Struggling British clothing retailer Superdry Plc is seeking additional funding. On Monday, the company confirmed current media reports about negotiations with its lender Hilco.
The discussions are about increasing the existing loan volume by a total of around 20 million British pounds, Superdry said in a statement. Around ten million British pounds will be used to “create additional liquidity to support the implementation of the ongoing turnaround plan and cost reduction program”. Ten million British pounds are also earmarked to cover seasonal capital requirements.
In addition, the company says it is trying to extend the term of Hilco’s existing credit lines by six months until February 7, 2025. However, it is currently not certain whether an agreement will be reached on the desired changes, the clothing supplier explained.
In view of falling revenues and high losses, Superdry is currently trying to implement a radical cost-cutting program. At the same time, co-founder and CEO Julian Dunkerton is still looking for investors to completely acquire the company and take it off the stock exchange.