A BIG fashion brand has given an update on its future after a string of closures.
Superdry has received up to £25 million in funding from Hilco Capital to help speed up the retailer’s turnaround plan.
The business said it has secured cash on top of an existing £80m loan received from Bantry Bay Capital.
The £25m deal with Hilco has a 12-month term with an option to extend.
Superdry said the additional funding will help speed up its £35m turnaround and cost reduction scheme, which was announced in April.
It happened when eight Superdry franchises closed or were about to close.
The retailer had previously denied the closures were part of a £35m cost reduction scheme announced in April, which included “property optimization”.
Instead, it said the decision rests with the independent owner who runs the eight stores.
Stores that have closed or are about to close during the latest cuts are:
- Stoke On Trent – closed mid-May
- Ipswich – closed June 7
- Luton – closed July 3
- Telford – closed July 4
- Lincoln – closed July 10
- Bury St Edmunds – in the process of closing
Two more stores are set to close, but Superdry has yet to confirm the exact locations.
A spokesperson for the retailer previously told The Sun: “We can confirm that eight stores operated by our franchisee under license from Superdry, are in the process of closing.
“The majority of Superdry stores in the UK are operated directly by Superdry and there are no plans to close any stores at this time.”
Some retailers are struggling to keep stores open as the high street is devastated.
Shoppers have cut back on their spending due to soaring inflation.
As prices go up, it squeezes people’s wallets, which means more people are forced to shop less – which is bad news for retailers.
Combined with high energy costs and the trend of online shopping being exacerbated by the coronavirus pandemic, many retailers have struggled to keep their stores open.
Boots will close hundreds of stores over the next year, reducing its portfolio from 2,200 to 1,900.
Meanwhile, Clarks and Iceland are closing some stores, including some this week.
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