Superdry confirms £70m refinancing talks with American lenders
Clothing retailer Superdry has confirmed talks with American lending provider Bantry Bay Capital Limited regarding the replacement of its £70m asset-backed lending (ABL) facility, as it looks to pay off debts due in 2023.
Superdry’s current ABL facility is provided by BNP Paribas and HSBC, however this deal expires in January.
In statement responding to media reporting released this morning, Superdry confirmed negotiations with the lending providers, owned by US hedge fund Elliott Advisors, following reports in The Sunday Times at the weekend.
The retailer said there was no certainty in whether an agreement would be reached, and added that it remains in discussions with other lenders.
Superdry said a further announcement will be made when appropriate.
In October, the retailer warned of a “material uncertainty” around its ability to continue trading, should it fail to refinance its ABL facility. However, Superdry said it remains confident the business would remain cash positive, following a strong year in which they saw a return to profit.
As with many others, Superdry is not immune to the difficult economic state retailers find themselves in, with company chair Peter Sjölander acknowledging in their annual report that: “the challenges emerging from the war in Ukraine and from the energy crisis, impacting household incomes and consumer confidence, alongside the threat of a global recession, are set to dominate FY23.”