Superdry, a struggling British fashion brand, has recently sold its intellectual property (IP) assets in the Asia Pacific (APAC) region for $50 million. The buyer is South Korea's Cowell Fashion Company, a firm that specializes in licensing and manufacturing apparel products for global brands across various product categories. This deal is part of Superdry's ongoing turnaround strategy to improve its financial situation.
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The sale allows Cowell to own and use the Superdry brand in key APAC markets, starting with South Korea and extending to other countries, including China. Both Superdry and Cowell will collaborate to develop products relevant to these markets. As part of the agreement, Superdry will provide support and know-how related to the brand during the first two years following the completion of the sale. In return, the company will receive an additional $1 million management fee for these services.'
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Superdry's founder and CEO, Julian Dunkerton, believes that this deal offers a fantastic opportunity for the brand to expand its global reach while providing additional funding to help deliver their turnaround program amidst challenging market conditions. Earlier this month, Superdry called in advisors to help cut costs due to these challenges.
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Despite facing difficulties, Superdry reported a 3.6% increase in group revenue to £287.2 million during the six months leading up to October 29, with store revenue up by 14.3%. However, the company's adjusted pre-tax loss for the same period widened to £13.6 million from a loss of £2.8 million a year earlier. Superdry now expects to break even for the year, compared to its previous guidance of an adjusted pre-tax profit between £10 million and £20 million.
