Superdry near to securing 70 million pound refinancing deal

Superdry has confirmed that it is close to closing a refinancing deal worth 70 million pounds as it looks to repay debts that are due in January 2023.

In a press release, the UK-based brand said it was in negotiations with Bantry Bay Capital Limited, a firm backed by US hedge fund Elliot Advisors, to replace its existing asset-backed lending facility.

It further noted that there was no certainty that an agreement would be reached or what the terms of such an agreement would entail.

The retailer, which is being advised by PricewaterhouseCoopers (PwC), issued a warning surrounding the lending facility expiration to shareholders in last month’s financial report, in which directors acknowledged there was material uncertainty.

Despite efforts to find new financing, the brand remained positive posting a return to profit while noting it had continued to make “good progress” across its strategic pillars.

While it did add that for FY23 it was expecting its adjusted profit before tax to drop to between 10 million and 20 million pounds, the retailer maintained that it had seen an “encouraging start” to the new financial year.