Struggling Superdry confirms it is looking to borrow extra £10m from backers

Struggling fashion chain Superdry has confirmed that it is in talks to borrow an extra £10m from its backers.

The Stock Market confirmation came in the wake of media speculation about the Cheltenham business and its mounting financial problems.

According to the reports the £10m comes on top of £100m worth of debts at the company which has been hit by a downturn in trading.

The firm, which was founded by Julian Dunkerton, issued a stock market statement following the speculation.

It said: “Superdry confirms that it is in discussions with Hilco over an increase to its lending facilities by approximately £10m to provide the company with necessary additional liquidity headroom to help facilitate the implementation of its ongoing turnaround plan and cost reduction programme, along with an additional £10m to assist with seasonal working capital peaks to the extent required, and an extension to the maturity date of its facilities with Hilco by six months to 7 February 2025.

“There is no certainty that such changes will be agreed.”

Dunkerton has confirmed he is looking to take the business into private hands with jobs cuts and store closures in the cards. Restructuring specialists have been bought in to help draw up a rescue package.

US investment firm Davidson Kempner is one of the firms talking to Superdry founder Julian Dunkerton about backing his prospective offer for the chain.

At one stage on Monday, shares in the retailer were trading at around 21.5p, giving it a market capitalisation of around £30m.

In recent months, Superdry has raised cash by selling the rights to its brand in regions including India and Asia-Pacific.