Superdry sells South Asia IP assets to India’s Reliance Retail
Superdry has signed a joint venture agreement with Reliance Brands Holding UK for the sale of its intellectual property assets in three South Asian countries.
As part of a £40 million deal, RBUK and Superdry will own 76% and 24% of the joint venture vehicle respectively.
RBUK is held by Reliance Retail Ventures through its subsidiary Reliance Brands, Superdry’s exclusive franchise partner in India since 2012.
Following the transaction, Reliance Brands will continue to oversee brand operations in the territories, which include India, Sri Lanka and Bangladesh.
Superdry expects to receive total proceeds of around £28.3 million net of transaction costs and taxation. These will be used strengthen the company’s balance sheet, boost liquidity, and fund its ongoing working capital requirements as part of its turnaround plan.
In a statement, Superdry said: “Superdry believes that the partnership with Reliance will provide the best opportunities for the future growth of the Superdry brand in territories, allowing the company to focus on growing its brand and increasing sales in its more established territories, where it has strongest expertise.”
In the 12 months to 29 April, the retailer reported an adjusted pre-tax loss of £21.7 million compared to a profit of £21.6 million in the prior year.
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