// Bantry Bay Capital agrees to increase Superdry’s borrowing level amid Asia Pacific deal
// The retailer revealed in March it had sold its IP rights in certain Asia Pacific countries to help boost liquidity
Superdry lender Bantry Bay Capital is to increase the retailer’s borrowing level until the completion of its Asian intellectual property sale.
The fashion retailer said on Tuesday the firm “has agreed to increase the borrowing availability” of its £80m asset-backed facility in the interim.
Superdry revealed in March it had sold its IP rights within in certain Asia Pacific countries to South Korean-based Cowell Fashion Company for £40.7m in a move to boost its liquidity.
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The retailer said its borrowing levels were determined by its asset base which is currently reduced due to “a seasonal low in the company’s working capital cycle alongside the previously reported weaker performance of the wholesale division”.
It added that the company’s net debt position, as of close of business on 24 April, was around £26m.
Earlier this month, Superdry withdraw its “broadly breakeven” full-year profit guidance following disappointing retail sales at the start of the year and confirmed it was considering an equity raise to strengthen its balance sheet.
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