Superdry lender increases borrowing amid APAC business sale

A Superdry lender is to increase its borrowing level until the British fashion retailer has completed the sale of its Asia Pacific (APAC) business.

Superdry said Tuesday that Bantry Bay “has agreed to increase the borrowing availability level under its asset-backed facility” until the sale is completed.

Superdry announced in March it had reached an agreement to offload its intellectual property (IP) assets within the APAC region to South Korean firm Cowell Fashion Company for 50 million dollars amid its ongoing turnaround strategy.

Superdry said Tuesday: “The company currently has in place an asset-backed loan of up to 80 million pounds.

It said the borrowing availability levels under the asset-backed facility is determined by the company’s asset base, “which is currently reduced on account of a seasonal low in the company’s working capital cycle, alongside the previously reported weaker performance of the wholesale division”.

As at close of business April 24, Superdry's net debt position is around 26 million pounds, it added.