// Superdry is set to refinance with a £70 million deal from a fund backed by US activist investors Elliott Advisors

// The investment is needed for Superdry to repay loans that are due to repay in January

Superdry is near to inking a £70 million refinancing deal with US hedge fund Elliott Advisors to help it repay debts that are due early next year.

The retailer, which is being advised by PwC, has been on the hunt for a new asset-backed lending (ABL) facility as its existing deal expires in January.

The retailer confirmed that it is in negotions with Bantry Bay, which is backed by Elliott Advisors, to replace the facility, although it pointed out that there can be no certainty that an agreement will be reached, or what the terms of the agreement would be.

It remains in discussions with other lenders.

Superdry’s current ABL deal is provided by HSBC and BNP Paribas. The uncertainty around its financing forced Superdry to issue a going concern warning last month.

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Despite the race to find new financing, Superdry’s performance has been positive as it posted a return to profit last month.

The retailer also flagged that it had an “encouraging start” to the new financial year “particularly autumn/winter trading”.

Superdry operates 740 branded stores across 61 countries and employs more than 2,500 people in the UK and Ireland.