Superdry secures new lending facility as coronavirus hits revenue
Superdry has secured a new financing arrangement with its lenders as the designer clothing brand seeks to shore up its financial position amid ongoing disruption from the coronavirus pandemic.
In a trading update, the firm said it had agreed a new £70m asset backed lending facility with HSBC and BNPP, extending the term until January 2023.
The announcement came as Superdry said that the pandemic continued to “materially impact” its performance, though it added that trading in the first quarter had been better than initially expected.
Total evenue for the period is down 24.1 per cent year on year, largely due to the impact of store closures as a result of Covid-19, it said.
Superdry began to reopen its stores at the start of the new financial year, and has now opened 95 per cent of it shops.
However, store revenue has plunged 58 per cent in the period as wary shoppers continue to avoid bricks and mortar locations.
On the contrary, the company’s online sales have continued grow apace, rising 93 per cent in the first quarter, though it added that they had levelled off somewhat recently.
As of last week, Superdry had a cash balance of £57.8m, up from £39.8m in May.
“This strong position is largely due to the significant and decisive management actions taken to preserve cash ahead of our working capital trough in October”, it said.
Chief executive Julian Dunkerton said: “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.”