LONDON (Reuters) – Struggling British fashion brand Superdry said on Monday it has secured additional funding of up to 25 million pounds ($32 million) from restructuring specialist Hilco Capital but faces paying interest of just under 16%.
The group, whose shares have slumped 44% this year, raised 11 million pounds in a share placing in May.
Superdry said the facility with Hilco is for a 12-month term with the option to extend, and is at an interest rate of 10.5% plus the Bank of England base rate on the drawn element.
Last week the BoE raised its key interest rate by a quarter of a percentage point to a 15-year peak of 5.25%.
The retailer said the Hilco funding will help drive its turnaround and cost-cutting plans.
The agreement is in addition to its existing 80 million pound asset-backed lending facility with Bantry Bay Capital Ltd.
Shares in Superdry were down 3.9% in early afternoon trading.
($1 = 0.7845 pounds)
(Reporting by James Davey; Editing by Sachin Ravikumar)