Big fashion brand with 104 stores gives update on future after wave of closures
A MAJOR fashion brand has given an update on its future after a string of closures.
Superdry has secured up to £25million in funding from Hilco Capital.
The business said the extra funding would help accelerate its £35million cost reduction programme, announced in April.
John Stevenson, research analyst at Peel Hunt, said the latest £25million cash injection would not impact current store closure plans.
He added that the money puts Superdry in a net cash position, meaning the company is financially sound.
However, he added that the retailer still needs help financing ordering more stock later this year.
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It comes after the business acquired a £80million loan from Bantry Bay Capital.
The retailer also announced eight franchise stores would close or are set to close.
Superdry has 219 physical stores and around 450 franchisees and licensees.
A physical store is owned and run by the company itself, while the 450 owned and run by franchisees are not under Superdry's control.
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The retailer previously denied the closures are part of the £35million cost reduction programme announced in April which included "estate optimisation".
Instead, it said the decision close a specific store lies with the independent franchisee who operates it.
The stores that have closed or are closing as part of the latest round of cuts are:
- Stoke On Trent - closed mid-May
- Ipswich - closed on June 7
- Luton - closed on July 3
- Telford - closed on July 4
- Lincoln - closed on July 10
- Bury St Edmunds - in the process of closing
A further two stores are set to close, but Superdry is 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 licence from Superdry, are in the process of closing.
"The majority of Superdry’s stores in the UK are operated directly by Superdry and there are no plans to close any of them at the present time."
A number of retailers are struggling to keep stores open as the high street takes a battering.
Shoppers have been cutting back on their spending due to soaring inflation.
When prices rise it squeezes people's wallets and purses, meaning many are forced to shop less - this is bad news for retailers.
Combined with high energy costs and a shift towards online shopping, which was exacerbated by the coronavirus pandemic, many retailers have been struggling to keep stores open.
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Boots is closing hundreds of stores over the next year, reducing its portfolio from 2,200 to 1,900.
Meanwhile, Clarks and Iceland are pulling down shutters on a number of stores, including some this week.
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