Hilco Capital, a reorganization expert, has agreed to provide Superdry with up to £25 million (about $32 million) in fresh funding. The cash will help the struggling company, whose shares have fallen around 44% this year, accelerate its turnaround strategy. This comes after Bantry Bay Capital granted Superdry an asset-backed loan agreement worth £80 million.
The company raised 11 million pounds in a share placement in May, despite its shares falling 44% this year.
According to Superdry, the Hilco facility has a 12-month term with an extension option and a 10.5% interest rate plus the Bank of England base rate on the drawn portion.
Last week, the Bank of England increased its benchmark interest rate by 0.25 percentage points, reaching a 15-year high of 5.25%.
The business said that the Hilco cash will support the execution of its cost-saving and turnaround programs.
The deal adds to its asset-backed credit facility with Bantry Bay Capital Ltd. for 80 million pounds. Early afternoon trading saw a 3.9% decline in the price of Superdry shares.
