(Alliance News) - Sky News on Monday reported that Superdry is in talks with Hilco for a new GBP10 million borrowing facility.
Sky News said Superdry is discussing a new facility with Hilco to borrow GBP10 million "or more". "City sources said the discussions were not certain to result in an agreement but were at a detailed stage," Sky said.
https://news.sky.com/story/struggling-superdry-in-talks-to-tap-hilco-for-new-10m-loan-13092579
Shares in the Cheltenham, England-based clothing retailer were down 2.2% to 31.80 pence each in London on Monday afternoon. They are 72% lower than a year ago and down 94% from five years ago.
Hilco Global is a Northbrook, Illinois-based financial services firm that specialises in corporate restructuring.
Since the start of February, takeover talks for Superdrug have heated up.
At the start of March, Superdry extended a deadline for Chief Executive Officer Julian Dunkerton to make a firm takeover offer, amid ongoing talks. The put-up-or-shut-up deadline for Dunkerton was extended to March 29.
Early in February, Dunkerton confirmed that he was in discussions with potential financing partners. This could include a possible cash offer for all Superdry shares not already owned by him. Dunkerton, who founded Superdry in 1985, currently has a 26% stake.
In late January, Superdry said it was working with advisors to consider "the feasibility of various material cost saving options".
In December, Superdry warned its profit for its current financial year ending in April will suffer amid the "well-documented challenging trading environment".
By Sophie Rose, Alliance News senior reporter
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