*

Talks still on with Dunkerton over alternatives

*

Lender Hilco agrees loan extension and increase

*

Interim CFO Giles David to join operational board April 1

(Adds details throughout on possible equity raise, Dunkerton

decision to not bid, interim CFO board joining date, background

in paragraph 9)

March 28 (Reuters) - Superdry ( SEPGF ) CEO and top

shareholder Julian Dunkerton will not be making an offer for the

company, both parties said on Thursday, and the struggling

British fashion chain said it reached an agreement to extend a

loan facility to help its turnaround plans.

Dunkerton, who holds a 26% stake in the company and is a

co-founder, had been in talks with Superdry ( SEPGF ) over several

options, including a possible cash offer for the shares he does

not already own.

While a bid has been shelved for now, the company, known for

jackets and clothing inspired by American vintage styles and

Japanese graphics, said alternatives remain open as it works on

cost-saving options to combat weak demand and a cash crunch over

recent months.

"The company remains in discussions with Julian Dunkerton in

respect of alternative structures, including a possible equity

raise fully underwritten by Julian Dunkerton," Superdry ( SEPGF ) said.

Dunkerton said that any equity raise would be expected at a

"very material discount" to Superdry's ( SEPGF ) current share price.

Dunkerton and Superdry ( SEPGF ), which issued identical

statements on the decision to not pursue a bid, expressed

confidence that a takeover offer was "unlikely to deliver an

outcome for shareholders, or stakeholders more broadly," which

existing efforts by the company could not.

The retailer on Thursday separately said it agreed to an

extension of six months and an increase of up to 20 million

pounds ($25.3 million) to its secondary lending facility with

Hilco Capital.

The company also said that Giles David, who was

named

interim finance chief in January, will join its operational

board to aid these plans and other discussions with Dunkerton.

Shares of Gloucestershire-based Superdry ( SEPGF ) closed down

about 5% on Thursday before the announcements, and have lost

about 16% so far this year.

The firm in January had warned that it does not expect

market conditions to improve in the near term after a tough

Christmas season.

($1 = 0.7917 pounds)