UK-based fashion brand Superdry strengthens its cash position with a £70 million financing deal. Superdry has entered into a new financing facility that, together with its strong net cash position, gives the brand the necessary flexibility and liquidity going forward. The new £70 million Asset-Backed Lending Facility (ABL Facility), extends until January 2023.
“The actions we have taken to date have greatly strengthened our cash position, which together with our new ABL Facility, give us the flexibility to execute our current plans and to secure our recovery. Together, we are making our way through this unprecedented period, and I’m confident we can reset the brand and deliver on our transformation plans,” said CEO Julian Dunkerton, as Superdry strengthens its cash position.
“Current trading in Q1 has been better than our initial expectations, however, disruption from Covid-19 continues to materially impact our performance year-on-year,” he added.
Superdry’s total group revenue for the period is down 24.1% year-on-year, largely due to the COVID-19 pandemic related temporary store closures. However, gradual reopening began at the start of FY21 and almost 95% of the brand’s stores have now re-opened. The store revenue has declined 58.1% in Q1 versus FY20.
“Our wholesale partners, particularly franchisees, have suffered the same headwinds and challenges as our owned stores, down 31.0% year-on-year. But we are pleased to see e-commerce has continued to perform well, up 93.2% in Q1, normalising in recent weeks as stores re-open and we trade against the promotional stance in the comparative period last year.”