Superdry has strengthened its financial standing by securing a £70million financing deal after reporting sales above expectations.

The Cheltenham-based fashion retailer saw total sales fell by 24.1 per cent in the three months to July 25 with online sales during lockdown helping to cover for losses caused by the closure of shops.

Co-founder Julian Dunkerton, who returned as chief executive after a boardroom shake-up last year, said the financing deal with HSBC and BNP Paribas which is extended to January 2023 would help to "secure our recovery".

He said: "The actions we have taken to date have greatly strengthened our cash position which, together with our new asset-backed lending facility, give us the flexibility to execute our current plans and to secure our recovery.

"Together we are making our way through this unprecedented period and I'm confident we can reset the brand and deliver on our transformation plans."

Sales in shops fell by 58.1 per cent tin the last quarter with shops shut for much of the period.

That was partially offset by a 93.2 per cent rise in online sales in the same period - the company having previously reported e-commerce has offset around one third of sales lost while all of its outlets were shut.

Online sales have returned towards more normal levels with 95 per cent of shops reopened.

The retailer reported a cash balance of £57.8million, up from £39.8million in May, after taking steps to save money such as furloughing the bulk of its staff and negotiating rent referrals from landlords.

Last month investment firm Gatemore Capital Management took a three per cent stake of Superdry and backed Mr Dunkerton's plans for the company, including taking control of branded franchise stores in China.