Superdry sells South Asian IP to Indian retail giant for £40m
Struggling fashion retailer Superdry has signed a joint venture with Reliance Brands Holding UK Ltd (RBUK) for the sale of its intellectual property in South Asia, in its latest bid to boost funds.
As part of the £40m deal, RBUK and Superdry will own 76 per cent and 24 per cent of the joint venture vehicle respectively.
The company is owned by Reliance Retail Ventures Limited through its subsidiary Reliance Brands Limited (RBL) one of India’s largest retailers.
Superdry said that its brand has expanded rapidly in India due to the company’s growing economy,.
It said: “Considering the backdrop of a growing Indian economy, a growing population of affluent shoppers, and ever-increasing apparel consumption rates, the Superdry brand in the market has attractive potential. “
News of the joint venture sent Superdry’s share price up 21 per cent, as markets responded to the announcement.
It mirrors an agreement announced by Superdry in March to sell the intellectual property of its Asia Pacific offering to South Korean retail group Cowell Fashion Company for $50m (£40m).
This saw 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.
Superdry has struggled in recent months, forced to take a one-year £25m loan from restructuring specialist Hilco in August.
It also 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”.
Superdry has 105 stores across the UK, with one flagship location on London’s Oxford Street.