Business

Superdry sales tumble as retailer secures new bank loan financing

The company has been hit hard by coronavirus
Mark Shapland
10 August 2020

Superdry sales fell sharply in May, June and July this year the high street retailer has warned.

Revenues over the period dropped by 24% as stores remained closed due to coronavirus.

All parts of the business have been hit, including the wholesale arm where sales fell by 31%.

The only bright spot was online which posted a 93% increase in revenues.

The company also secured new bank loan facilities worth £70 million.

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The asset backed lending facility replaces the existing facility that the company had in place, which was due to expire in January 2022.

It comes after the company had already taken numerous steps to save cash, including furloughing 88% of its staff at one stage in the lockdown, and rent referrals from landlords.

Julian Dunkerton, chief executive officer, 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."

Analysts at broking firm Jefferies said: "In our view, the focus is now shifting back from survival and liquidity to the execution of the brand reset and transformation plans."

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