// Superdry ends four-year joint venture with Chinese partner Trendy International
// The companies reached an “amicable agreement” following a review
Superdry has terminated its Chinese joint venture with Trendy International, after a review of its long-term business strategy in China.
The fashion retailer said it reached an “amicable agreement” to exit the joint venture, Trendy & Superdry Holding.
This means Superdry will be “free to determine how it will trade in China in the future” and brings to an end the four-year joint venture with 25 owned and 41 franchise stores.
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Superdry said all owned stores are due to close in China by the end of August, with the franchise stores to close by the end of the year.
The move will cost Superdry £6 million, half of which will be recognised in the first half of the current financial year.
The retailer said it did not expect to incur any further costs.
Both companies said the decision to end the joint venture was accelerated by the Covid-19 impact.
Meanwhile, Superdry chief executive Julian Dunkerton said the retailer still saw a “huge opportunity” in China.
“I believe that China represents a huge opportunity for Superdry in the longer term. As the way people are shopping there changes, it makes sense for us to shift our focus to the growth channels of online and wholesale,” he said.
“Combined with the improvements we are making to our product ranges, I am confident that this is the right time for us to take back full control of our brand in China and to re-position our operations in the region to deliver profitable future growth for Superdry.”