Summary
Cheltenham’s iconic fashion brand Superdry has signalled that it has taken its core debt away from its previous “emergency” turnaround lenders and carried them over to major mainstream corporate banks, the details confirming a £70m refinancing package led by Barclays and Bank of America .
Details
The financial move, seen by markets as a major shift , will see Superdry “securing funding for the next phase of growth and underlining lender confidence in the group’s strategic direction”, the firm said in a statement.
It added the new deal “pays for what comes next: 21 new stores planned for FY27, continued expansion across Europe, and further investment in the brand portfolio built under Superdry & Co, including the rollout of Bench, the exclusive UK and European launch of US workwear brand Stan Ray, and the long-term Kappa partnership arriving for SS27”.
The refinance development confirmed that Superdry has agreed a £60m committed asset-based lending facility with the two banks, with Barclays being the lead. The deal runs to October 2029 and replaces an agreement with Bantry Bay Capital and Hilco Capital , as settled during the turnaround in 2023. LINK?
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Hilco Capital has also, however, extended its support to June 2028, providing up to £30m of additional wriggle room, alongside the new deal, while Barclays is providing a further £10m trade finance facility guaranteed by UK Export Finance, the UK government’s export credit agency, to support the group’s “growing international business”.
Superdry heralded the agreement as “a significant step forward in the group’s transformation, shifting the business from stabilisation to growth” and said it followed its return to profit in FY25, as well as continued EBITDA improvement through FY26 and a strong start to FY27. It added that the deal “will benefit the cost base by around £5m and [add] the liquidity headroom to invest behind the plan”.
Julian Dunkerton, founder and CEO, said: “We have done the hard work of fixing our foundations. The refinancing gives us the backing to focus on what matters most: growth, building Superdry & Co’s brand portfolio, strengthening our international presence, and opening new stores in the right locations.
Having Barclays and Bank of America behind us says a great deal about where we are taking this business and the opportunity ahead of us.” Nic Shaw, CFO, added: “This refinancing puts the group on a firmer financial footing and gives us the headroom to invest behind our strategic plans.
Report source: Punchline Gloucester
