BackUK's struggling fashion retailer Superdry to sell its IP assets to Mukesh Ambani's Reliance Retail.
UK's struggling fashion retailer Superdry to sell its IP assets to Mukesh Ambani's Reliance Retail.
Superdry will pay Reliance Retail $48.27 million for its intellectual property assets.
Superdry, a failing clothes store in the UK, and Mukesh Ambani's Reliance Retail have formed a joint venture. According to the Reuters news agency, Superdry will pay $48.27 million to Reliance Retail for its intellectual property assets. With this agreement, the joint venture vehicle will be owned by 24% and 76%, respectively, of Superdry and Reliance Retail, which collectively operate more than 18,000 outlets.
According to the report, Reliance Retail would continue to manage brand activities in Bangladesh, Sri Lanka, and India.
The UK retailer is battling sluggish wholesale partner orders. The business is also having trouble getting funds. The UK-based retailer stated that it anticipates 30.4 million pounds in gross cash proceeds.
Other agreements Superdry has successfully closed include one in August for a £25 million secondary credit facility with Hilco Capital, in addition to one with Reliance Retail. Moreover, an £80 million agreement with Bantry Bay Capital.
Earlier this year, Superdry sold shares to raise an additional £12 million.
On the other hand, in early September of this year, India's largest retailer launched a joint venture with a 51% stake in Ed-a-Mamma, a children's and maternity clothes company promoted by Bollywood star Alia Bhatt.
"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," said Isha Ambani, director of retail for Reliance and the daughter of Mukesh Ambani, after the deal was finalized.
"With sustainability as its central selling point, the business has won praise for its exquisite attention to detail, use of ethically sourced materials, and environmentally responsible manufacturing methods. This fits in perfectly with Reliance Brands' goal of promoting a future in the fashion business that is more ethical, she continued.
Since its founding in 2007, Reliance Brands has partnered with more than 50 foreign companies and runs more than 2,000 outlets in India.
The largest retailer, RRVL, with a combined turnover of 2.60 lakh crore (USD 31.7 billion) in the fiscal year that concluded on 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.
