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 to help turbo charge the retailer's turnaround plan.
The business said it had acquired the cash on top of the existing £80million loan received from Bantry Bay Capital.
The £25million agreement with Hilco is for a 12-month term with the option to extend.
Superdry said the extra funding would help accelerate its turnaround plan and £35million cost reduction programme, announced in April.
It comes as eight Superdry franchise stores have already closed or are set to close.
Read more in Retail
Tesco is making huge change to yellow sticker bargains at hundreds of stores
Wilko issues heartfelt message to all shoppers as chain on the brink of closing
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 lies with the independent owner who operates the eight stores.
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
Most read in Money
Wilko 'humbled' by support as firm on brink of administration risking 400 stores
Martin Lewis' urgent warning as anyone with savings account could lose £1,000s
£148m EuroMillions winner spotted with new love for first time… at Tesco
Lucozade has made a big change to recipe – and fans are fuming
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.
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.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
Source: Read Full Article