UK’s struggling fashion retailer Superdry to sell its IP assets to Mukesh Ambani’s Reliance Retail
Superdry will sell its intellectual property assets to Reliance Retail for $48.27 million
UK's struggling fashion retailer Superdry has announced a joint venture with Mukesh Ambani's Reliance Retail. Superdry will sell its intellectual property assets to Reliance Retail for $48.27 million, Reuters news agency reported.
With this deal, Superdry and Reliance Retail, whose more than 18,000 stores, will own 24% and 76%, respectively, of the joint venture vehicle.
Reliance Retail will continue to oversee brand operations in India, Sri Lanka, and Bangladesh, the report added.
The UK retailer is grappling with weak orders from wholesale partners. The company is also facing funding challenges. The UK-based retailer said it expects gross cash proceeds of 30.4 million pounds.
Apart from a deal with Reliance Retail, other deals Superdry has stuck include one in August for a £25 million secondary lending facility with Hilco Capital. And, £80 million deal with Bantry Bay Capital.
Superdry raised £12 million from share sales earlier this year as well.
On the other hand, India's biggest retailer entered into a joint venture with a 51% stake in Bollywood actress Alia Bhatt-promoted clothing brand of kids and maternity wear Ed-a-Mamma in early September this year.
After closing the deal, Reliance Retail Director and daughter of Mukesh Ambani, Isha Ambani said, "At Reliance, we have always admired brands that lead with a strong purpose and embody a unique design ethos exemplified perfectly by Ed-a-Mamma and its founder Alia Bhatt.
"With sustainability as its core proposition the brand has garnered acclaim for its meticulous attention to detail, using ethically sourced materials and eco-conscious production processes. This aligns seamlessly with Reliance Brands' vision of fostering a more responsible future for the fashion industry," she added.
Established in 2007, Reliance Brands has collaborated with over 50 international brands and operates over 2,000 stores in India.
RRVL is the leading retailer and had reported a consolidated turnover of ₹2.60 lakh crore (USD 31.7 billion) in the year ended March 31, 2023.
Reliance Retail has a portfolio of brand partnerships which includes Armani Exchange, Bally, Bottega Veneta, Burberry, Canali, Coach, Diesel, Dune, Emporio Armani, Ermenegildo Zegna, Gas, Giorgio Armani, Hamleys, Hugo Boss, Jimmy Choo, Michael Kors, Mothercare, Muji, Paul & Shark, Paul Smith, Pottery Barn, Ritu Kumar, Steve Madden, Superdry, Scotch & Soda, Tiffany & Co, Versace, etc.
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Business NewsCompaniesNewsUK’s struggling fashion retailer Superdry to sell its IP assets to Mukesh Ambani’s Reliance Retail
First Published:4 Oct 2023, 01:19 PM IST
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