Superdry announced yesterday (22 December) that it secured financing, including a GBP30m term loan, in a new three-year facility contract until December 2025 with specialist lender Bantry Bay Capital.

The announcement comes after the fashion retailer issued a filing to the stock exchange on 28 November, acknowledging recent press speculation about its previously announced refinancing process.

The current loan replaces its existing up to GBP70m Asset Based Lending Facility which was due to expire by the end of January 2023.

Given market conditions, the brand warns, the interest rate will be higher than its previous agreement at the Sterling Overnight Interbank Average Rate (SONIA2) 7.5% on the drawn element.

Superdry‘s founder and chief executive officer, Julian Dunkerton, said the brand was under ‘no illusions’ that consumer confidence is fragile and that the picture is unlikely to change quickly.

He added: “The revised facility is operationally less complex to manage and covenant light, giving us the necessary flexibility to navigate the current challenging macro-economic environment and continue to focus on driving our brand strategy forward.

He was also keen to highlight that he was alo encouraged with how the company started its second half and stated it had seen its biggest ever week for Ecommerce orders driven by a return to record levels of jacket sales over the Black Friday period and good momentum through the recent spell of colder weather.

He said: “We are very pleased to have completed our refinancing and this, combined with the continued strengthening of our brand and product, means the business is in good shape as we trade through our important Christmas trading period.”

Superdry’s trading update covering the 26-week period (‘H1 23’) to 29 October 2022:

  • Group revenue increased 3.6% year-on-year, driven by strong performance in owned stores
  • Store revenue increased 14.4% year-on-year as collections resonated well with customers
  • Ecommerce revenue increased 1.7% year-on-year as traffic moved from online and back to stores, with jacket sales and AW22 performance from third party sites being the key drivers of growth
  • Wholesale revenue decreased 5.2% following low levels of dispatches in October which are expected to partially reverse in the second half

The UK retailer reported a full year return to profit in October 2022 following a decline in 2021 due to Covid, however, it warned of the challenges times ahead facing retail and the threat of global recession in 2023.