A joint venture agreement for the sale of Superdry’s intellectual property (IP) assets, including the Superdry brand and associated trademarks in India, Sri Lanka, and Bangladesh, was signed on Wednesday, the UK clothing brand Superdry stated. The joint venture will be owned by Reliance Brands and Superdry to the tune of 76% and 24%, respectively.
Details on Superdry will sell Reliance Retail its South Asian intellectual property for $48.27 million
Reliance Brands, a subsidiary of Mukesh Ambani’s Reliance Retail Ventures, which has been Superdry’s franchise partner in India since 2012, owns RBUK. The brand operations in Bangladesh, Sri Lanka, and India will continue to be managed by Reliance Brands.
The price for the South Asian intellectual property, according to the business, is £40.0 million ($48.27 million). Gross cash proceeds are expected to be £30.4 million, or $36.64 million, for Superdry.
Since joining forces with RBL in 2012, Superdry has swiftly grown in India. According to the report, the brand has appealing potential in India given the country’s expanding economy, expanding number of wealthy consumers, and rising rates of garment consumption. According to Superdry, Reliance Brands is best positioned to take advantage of the opportunity due to its majority IP ownership holding.
Superdry will invest £9.6 million ($10.8 million) in the new JV organization and transfer its intellectual property holdings in the territories to it. According to the statement, Superdry will continue to provide finished goods to Reliance at standardized commercial terms.
The purchase, which has been approved by the Superdry board, is subject to shareholder and lender approval. The transaction will happen within 10 days after the conditions have been satisfied within three months of the agreement’s date. Over 50 different luxury apparel brands are carried in more over 18,000 Reliance Brands outlets, the premium retail division of RRVL. In total, there are 7,000 towns where it is present.