Retailer Superdry seeks new funds to repay bank debt

Superdry’s directors have acknowledged that there was material uncertainty over the company’s ability to continue as a going concern until funding was secured.

The Superdry outlet on Cork City's St Patrick's Street.

Clothes retailer Superdry is seeking to tap investment funds to repay banks on a loan due in January as the cost-of-living crisis hits consumer spending.

The London-listed clothing company has been sounding out potential new investors to replace an asset-backed facility worth £70m (€80.5m), according to sources familiar with the matter. 

The company said it is in “positive ongoing discussions with lenders”, reiterating what it said in a quarterly report published last month.

Spokespeople did not elaborate further on the talks. In the report, Superdry’s directors acknowledged that there was material uncertainty over the company’s ability to continue as a going concern until funding was secured.

The company is working with PricewaterhouseCoopers as financial adviser, the people said. A representative for PwC declined to comment.

Shares of Superdry reversed earlier gains and were 1.7% lower at 4.01pm in London.

The cost-of-living crisis, combined with supply chain challenges, have proved too much for some retailers. Online furniture store Made.com and clothing chain Joules have both filed for insolvency this month.

Superdry, which is known for its logo T-shirts and bright colours, reported a return to profit last month, driven by selling more clothing at full price. 

The business said that its financial year has got off to an “encouraging” start, and analysts at Liberum said they are confident in Superdry’s “long-term trajectory”. 

Still, store visits to Superdry have not yet recovered to pre-Covid levels. 

Bloomberg