Superdry's shares have slumped 33% this year alone so it hopes the funding from Hilco Capital will improve its liquidity and play a crucial role in accelerating its turnaround efforts and ability to reduce its costs.

The arrangement with Hilco spans a period of 12 months initially, with the option to extend, and has an interest rate of 10.5%, coupled with the Bank of England base rate on the drawn element.

In April, the retailer unveiled its intentions to achieve £35m in cost reductions as part of its turnaround initiative, involving activities such as optimising its store locations, and distribution savings, improving procurement, and reducing its product range.

The agreement is an add-on to Superdry’s pre-existing asset-backed lending facility of £80m, including a £30m term loan over three years with the option to extend, with Bantry Bay Capital, made back in December 2022.

Founder and CEO of Superdry Julian Dunkerton’s attempt to rejuvenate Superdry’s performance came after the company announced its plan in March to sell its intellectual property assets in the Asia-Pacific region to South Korea’s Cowell Fashion Co in a £40.7m deal.

As part of the deal, Cowell, which has been listed on the South Korea stock exchange since April 2015, will own and use the Superdry brand in key APAC markets, starting in South Korea before extending to other regions including China, with Superdry and Cowell working together to develop products relevant for those markets.

In March 2023, the company engaged financial advisory business Interpath Advisory to support its efforts in slashing costs.