Superdry is pondering the option of vending its brand rights in the US and Middle East as a strategy to enhance its financial stance.
Reportedly, the fashion retailer is in discussions with potential purchasers to offload its intellectual property rights in these markets, with the goal of raising tens of millions of pounds, as per The Telegraph.
This move comes as the founder and CEO, Julian Dunkerton, persists in seeking added funding to fortify the company’s financial position, subsequent to another recent profit warning.
Prior to this, Superdry divested its intellectual property assets in India, Sri Lanka, and Bangladesh to Reliance Brands Holding, India’s largest retailer, for £40 million. In March, it also dispensed its brand rights in South Korea, China, and other regions of Asia to South Korea’s Cowell Fashion Company for £40.7 million.
Sources divulged that talks concerning the retailer’s assets in the Middle East were more progressed in comparison to those in the US, with interest from a potential US bidder beginning to wane.
If the sale flourishes, it will be part of a series of endeavours taken by the retailer to generate supplementary funds, including a £12 million equity raise in May to bolster its turnaround plan, subsequent to retracting its “broadly breakeven” profit guidance.
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