Superdry sells Asia Pacific IP for £40.7 million amid turnaround plans

Superdry has sold its intellectual property assets in certain countries within the Asia Pacific to South Korea's Cowell Fashion Company for £40.7 million ($50 million), giving the business a cash boost.

Cowell is described as "an experienced local operator within the APAC region" and has been listed on the South Korean stock exchange since April 2015. Cowell’s operations focus on licensing and manufacturing apparel products for established global brands across product areas including underwear, sportswear, and accessories.

Superdry said that it chose Cowell because the business is "ideally positioned to appreciate and maximise Superdry’s potential" across the region.

The Agreement means Cowell will own and use the Superdry brand in key APAC markets, starting with its home market of South Korea and extending to others including China, with Superdry and Cowell working together to develop specific products for those markets.

Superdry also confirmed that it plans to build a collaborative partnership with Cowell, capitalising on the shift in consumer preferences in Asia towards lifestyle product, working together to design and develop market-relevant product which remains consistent with the brand heritage.

The business will help and provide certain support and know-how relating to the Superdry brand during the first two years following completion of the sale. In consideration for these services, an additional management fee of £810,000 ($1 million), comprising of two payments, is also payable directly to Superdry, with the first instalment being payable on completion and the second instalment being payable on the first anniversary of completion.

Earlier this month, Superdry appointed advisers from Interpath to advice on its "cost base and structure" as it works to complete its turnaround programme. Interpath's work is expected to focus on Superdry's wholesale business and will likely engage with Bantry Bay Capital, the investor which injected £80 million into the fashion retailer in December.

Julian Dunkerton CEO and Founder of Superdry

Speaking about the new agreement, Julian Dunkerton, Superdry’s Chief Executive Officer and Founder, said: “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. I’m absolutely thrilled by the opportunity to work together with Cowell to create inspiring products consistent with our brand heritage and build out across the APAC market.”

Lee Sun-seop, Cowell Fashion Chairman, added: “The collaboration between Cowell Fashion, which has state of the art planning, design, and production know-how, and Superdry PLC, which has a long history of innovation and brand power, can be said to be the beginning of a paradigm shift in the Korean fashion industry. 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.”

Dunkerton has brushed off speculation that he had plans to take the business he co-founded in 2003 back into private ownership.

In a recent interview with TheIndustry.fashion, Dunkerton explained how he was placing sustainability and affordability at the centre of his strategy and talked through the thinking behind its new Merchant Store premium collection.