Reliance Brands Holding UK (RBUK) and struggling British fashion retailer Superdry have struck a deal for the sale of Superdry's intellectual property assets in India, Sri Lanka, and Bangladesh for 40 million pounds (Rs 404 crores).
The sale includes the SUPERDRY brand and related trademarks in India.
In a joint venture, RBUK and Superdry will own 76 per cent and 24 per cent, respectively. The sale of the South Asian IP will yield £40m, with Superdry expected to receive £30.4m in gross cash proceeds.
Reliance Retail Ventures Limited's premium retail arm, RBL, manages over 18,000 stores in India, featuring 50 different luxury fashion brands. The brand has a presence in 7,000 towns and a total shopping area of over 65 million sq ft.
Superdry stated that the partnership would allow for the future growth of the Superdry brand in new territories while enabling the company to focus on its established territories where it has expertise.
For the financial year ending April 30, 2023, the South Asian IP contributed £11m in revenue and £2.6m in profit before tax, representing 1.8 per cent of the total group sales.
Peel Hunt and Liberum Capital are joint corporate brokers for Superdry.
Superdry is currently struggling due to weak orders from its wholesale partners and funding challenges.
Apart from Reliance, Superdry has secured deals with various companies, including a £25 million secondary lending facility with Hilco Capital in August and an £80 million deal with Bantry Bay Capital. Additionally, the company raised £12 million from share sales earlier this year.