Today’s news in brief-12/3/24

Superdry is in talks with Hilco Capital for a loan of up to £20m. This loan would support the company’s ongoing turnaround efforts and provide liquidity for its operational needs, including managing seasonal working capital peaks. Additionally, Superdry aims to extend the maturity date of its facilities with Hilco. These discussions coincide with rumours of the company’s founder, Julian Dunkerton, exploring options to take the company private.

Hype experienced a change in leadership as co-founders Liam Green and Bav Samani stepped down. This transition follows the company’s administration in 2023, attributed to declining sales and excess stock post-Covid. Despite these challenges, Hype has undergone a pre-pack rescue and appointed new executives to lead the brand into its next chapter.

Ann Summers reported a gross profit increase to £61.8m for the fiscal year ending July 2023. The company attributes this growth to a 12% year-on-year increase in in-store sales as consumer foot traffic returned to the high street post-pandemic. Ann Summers also expanded its partnerships and store portfolio, despite facing inflation-related challenges impacting profitability in the second half of the year.

Mango achieved record turnover of €3.1bn in FY23, signalling a 15% increase. The brand also doubled its net profit and increased EBITDA by 22% during the same period. Mango’s physical store expansion and strategic plan, 4E, aimed at elevating, expanding, earning, and empowering the brand, contributed to its success. The company aims to reach sales exceeding €4bn by 2026.

Matalan faced financial losses, with a pre-tax loss of £103.4m in FY23, widened from the previous year. Despite revenue growth, driven by changes in selling price and range mix, inflationary pressures and increased costs impacted profitability. However, the company was acquired by a group of investors who injected £100 million in new growth funding, aiming to support Matalan through its strategic sales process.