Superdry share price up three per cent after sale of Asian Pacific IP for £40m
Struggling fashion brand Superdry has sold the intellectual property of its Asia Pacific offering to South Korean retail group Cowell Fashion Company for $50m (£40m) in a bid to boost funds.
The deal will see Cowell own and sell the Superdry in the Asian market starting with its home market of South Korea and then eventually extending to other markers such as China.
The pair said they would work together to “develop products relevant for those markets”, while London-listed Superdry’s share price was up more than three per cent this morning.
“This agreement offers the Superdry brand a fantastic opportunity to expand its global reach, whilst providing additional funding to help deliver our turnaround programme in the face of the challenging consumer landscape,” Julian Dunkerton, chief executive of Superdry said.
With the two companies aligned together through explosive synergy, the plan to grow Superdry into a Superbrand across Asia is an exciting proposition as long term partners,” Lee Sun-seop, fashion chairman at Cowell, added.
The sale comes as Superdry posted a £17.7m loss in the first half of its 2023 financial year, with the retailer stating that the “remainder of the year is uncertain”.
Speaking at the time, Dunkerton said: “Whilst we did trade well through November and December, the outlook for the remainder of the year is uncertain and as a result, we are moderating our profit outlook to broadly breakeven.”
Superdry has 105 stores across the UK, with one flagship location on London’s Oxford Street.