Superdry is considering the sale of its brand rights in the US and Middle East as it looks to boost its liquidity.
According to The Telegraph, the fashion company is reportedly in talks with possible buyers over the sale of its intellectual property rights in the marketplace with the goal of raising tens of millions of pounds.
Julian Dunkerton, the company’s founder and CEO, made the decision while he is still looking for funding to strengthen the company’s financial sheet following another profit warning last week.
Following the £ 40 million sale of its intellectual property holdings in Bangladesh, Sri Lanka, and India to the country’s largest retailer, Reliance Brands Holding, talks have begun to divest the brand’s rights in the US and the Middle East.
In March, Cowell Fashion Company of South Korea purchased Superdry’s brand rights in China, South Korea, and other Asian countries for £ 40.7 million. Following the withdrawal of one bidder, talks about the retailer’s assets were reportedly further along in the Middle East than they were in the US, according to sources.
If the sale goes through, it will be an extra cash-raising effort for the shop, which already included a £ 12 million equity issue in May to support its recovery strategy following the business’s forced withdrawal of its “broadly breakeven” profit outlook.
