Superdry has confirmed it is in talks with a US hedge fund as the company faces an uncertain future if it fails to attract a new lender.
The clothing retailer said last month there was “material uncertainty” about the future of its business as a £70million credit facility expires in January.
On Monday, Superdry confirmed a report in the Telegraph that it is trying to secure funding from Bantry Bay Capital, which is backed by activist US 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 loan provider, to replace its existing asset-backed credit facility of up to £70m,” the company said Monday.
She added that there was no certainty about a deal and she would make another announcement “if necessary”.
“We remain in discussions with other lenders,” Superdry said.
It comes just over a month after chairman Peter Sjolander issued a warning that came with otherwise strong results for the company.
He said: “We have had positive discussions with potential lenders but at this stage we have not secured any committed financing beyond January.
“The Directors recognize that, pending the conclusion of these discussions, there is material uncertainty as to the going concern of the Group, although we remain confident that a positive outcome will be achieved.”
The company returned to profitability in the year to April, rising from a pre-tax loss of almost £37m to profit of £18m, it said last month.
Sales rose by almost a tenth to just under £610million in the same period that stores reopened after the pandemic.
Over the weekend, the Telegraph reported that talks between Superdry and Bantry Bay were at an advanced stage and an agreement could be reached this week. However, the talks could still collapse.
https://www.independent.ie/world-news/superdry-confirms-talks-with-hedge-fund-backed-lender-to-secure-future-42178552.html Superdry confirms talks with hedge fund-backed lender to secure future