Superdry confirms talks with US hedge fund to secure future
SUPERDRY has confirmed it is in talks with a US hedge fund as the business faces an uncertain future if it cannot secure a new lender.
The Cheltenham-based clothing retailer said last month that there was a “material uncertainty” over the future of its business as a £70 million loan facility is set to expire in January.
Yesterday Superdry confirmed a report in the Telegraph that it is trying to secure funding from Bantry Bay Capital, which is backed by US activist investor Elliott Advisors.
“Superdry acknowledges recent press speculation about its previously announced refinancing process and confirms that it is in negotiations with Bantry Bay Capital Ltd, the specialist lending provider, to replace the existing up to £70 million asset-backed lending facility,” the business said yesterday.
It added that there was no certainty of an agreement and it would make a further announcement “when appropriate”.
“We remain in discussions with
We have not yet secured committed funding beyond January PETER SJOLANDER
other lenders,” Superdry said. It comes just over a month after the 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 pretax loss of almost £37 million to a profit of £18 million, it revealed last month.
Revenue rose by nearly a tenth to just under £610 million in the same period as shops reopened again after the pandemic.
Over the weekend the Telegraph reported that the talks between Superdry and Bantry Bay were advanced and a deal could be agreed this week. However, the talks could still fall apart.