Struggling Superdry reportedly in talks to tap Hilco for £10m loan

The Superdry logo on a store in Brussels

Struggling high street retailer Superdry is reportedly in talks to tap one of its existing lenders for a £10m loan.

London-listed Superdry is said to be in talks with Hilco to borrow the multi-million pound sum, as it looks to source extra financial headroom amid a period of losses.

The discussions are on top of the more £100m of existing debt, according to Sky News’ Mark Kleinman. 

“City sources said the discussions were not certain to result in an agreement but were at a detailed stage,” the outlet said.

City A.M has contacted both parties for a comment.

It comes as founder Julian Dunkerton is scheming to take the retailer private, hunting for backers to fund the deal.

He was said to be working with  US private equity firm, Davidson Kempner, about a potential rescue of the ailing fashion retailer.

Other potential suitors include Retail Realisation, supported by the founder of turnaround investor Rcapital.

Dunkerton, who returned to the business five years ago after being ousted, has until March 29th to either present an offer or pull out of the race.

Superdry, which has 98 stores across the UK, has been struggling to keep its head above water for months, launching a number of schemes to shore up extra costs.

Back in October, it signed a joint venture with Reliance Brands Holding UK Ltd (RBUK) for the sale of its intellectual property in South Asia, in its latest bid to boost funds.

It mirrored an agreement announced by Superdry in March to sell the intellectual property of its Asia Pacific offering to South Korean retail group Cowell Fashion Company for $50m (£40m).