Struggling Superdry cashes in by selling Asia IP for $48 million
British retailer Superdry has sold its licenses and brand assets in Sri Lanka, Bangladesh and India for £40 million ($48 million) to Reliance Retail, India’s largest retail giant.
The company has been retailing from Sri Lanka, Bangladesh and India since 2012, which is when it first partnered with Reliance Retail. However, this move will ensure the struggling British retailer will obtain much-needed funds.
Reliance Retail, helmed by Billionaire Mukesh Ambani, was founded in 2006 and has over 18,000 stores that sell everything from groceries to apparel. It also has strong partnerships with overseas brands such as Jimmy Choo and Marks & Spencer.
The deal will be via a joint venture, which sees Superdry invest £9.6 million for a 24% stake. According to Superdry, this will help it "focus on growing its brand and increasing sales in its more established territories, where it has the strongest expertise."
Superdry's shares jumped 18% on Wednesday after the company said it would use the expected £28.3 million proceeds to fund its turnaround plan.
At the time, Julian Dunkerton commented: "I’m really excited by our new partnership in Asia, finalised after year-end, which not only has helped rebuild our balance sheet but will ensure Superdry can achieve its potential as a truly global brand."
