Superdry is considering selling its brand rights in the US and Middle East to improve its financial position.
The fashion retailer is reportedly in talks with potential buyers to sell its intellectual property rights in these markets, aiming to raise tens of millions of pounds, according to The Telegraph.
This decision comes as founder and chief executive Julian Dunkerton continues to seek additional funding to strengthen the company’s balance sheet, following another profit warning issued last week.
Earlier, Superdry sold its intellectual property assets in India, Sri Lanka, and Bangladesh to India’s largest retailer, Reliance Brands Holding, for £40 million. In March, it also sold its brand rights in South Korea, China, and other parts of Asia for £40.7 million to South Korea’s Cowell Fashion Company.
Sources revealed that discussions regarding the retailer’s assets in the Middle East were more advanced compared to those in the US, as interest from one bidder in the US began to diminish.
If the sale is successful, it will join the list of initiatives taken by the retailer to generate additional funds, including a £12 million equity raise in May to support its turnaround plan, after it had to retract its “broadly breakeven” profit guidance.
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