Struggling fashion chain Superdry has confirmed it is in discussions with refinancing firm Hilco over a £10m loan. The Cheltenham-headquartered retailer is in talks to increase its lending facilities to help with its turnaround plans.

It also said it is having discussions for an extra £10m to assist with seasonal working capital, and an extension to the maturity date of its facilities with Hilco by six months to February 7 next year.

The business told the stock market there was “no certainty” that such changes will be agreed. The company issued the statement in response to media speculation about the future of the business.

In February, Superdry confirmed it was “engaged in discussions” with potential financing partners.

The business, co-founded in 2003 by Julian Dunkerton, employs around 3,350 globally and runs 216 shops alongside franchised stores. But it has been faced with difficulties in recent months, reporting a nearly one-quarter drop in revenue and a widening of its adjusted loss in January.

Revenue at the company fell 23.5% to £219.8m in the six months to the end of October after the UK experienced an unusually warm autumn period, which made people less keen to buy clothes from Superdry’s collection.

Last year, the retailer looked to cut its operating costs by more than £35m. The company agreed a £25m loan with Hilco in August to supplement an £80m refinancing deal with US hedge fund Bantry Bay Capital in 2022.