Superdry, the fashion retailer, is reportedly engaging in discussions to sell its brand rights in the US and Middle East as a means to generate funds and improve its financial standing. While an official confirmation has yet to be made, the company is said to be in talks with potential buyers regarding the sale of its brand and intellectual property rights in these markets. This strategic move comes in response to a difficult period for Superdry, with its balance sheet facing significant pressure and its share price experiencing a decline.

To address these challenges, founder and CEO Julian Dunkerton has been implementing measures to strengthen the company’s finances. The potential sale of brand rights has been received positively, as evidenced by Superdry’s share price increasing by up to 5% upon the reopening of the London stock exchange after the Christmas break. Although finalizing the deals for the US and Middle East markets may take some time, negotiations for the Middle East region are said to be well advanced. However, there might be a delay in reaching an agreement with a potential buyer in the US.

This is not the first instance of Superdry selling brand rights in international markets. Previously, the company entered into a licensing joint venture in India and Sri Lanka with Reliance Brands, led by Mukesh Ambani, generating £30 million. Furthermore, Superdry sold its intellectual property rights in South Korea, China, and other parts of Asia for approximately £40 million.

Julian Dunkerton returned to lead Superdry in 2019 after disagreements over strategy and concerns about the company’s declining performance. However, the company has struggled to fully recover, facing obstacles such as clearing old stock and dealing with the repercussions of the COVID-19 pandemic.

In summary, Superdry is reportedly discussing the potential sale of its brand rights in the US and Middle East markets to raise funds and improve its financial situation. While negotiations in the Middle East appear to be progressing well, finalizing a deal with a potential buyer in the US may take longer. This strategic move follows previous sales of brand rights in international markets. Despite the efforts made by CEO Julian Dunkerton since his return in 2019, the company continues to face challenges. However, the news of the potential brand rights sale has had a positive impact on Superdry’s share price.

Useful links:
1. Superdry Official Website
2. Reliance Brands Official Website