// Superdry has agreed to sell its Asia Pacific IP to South Korea’s Cowell Fashion Company for an upfront fee of £40.7m
// The fashion retailer said the deal would help boost its liquidity and strengthen its balance sheet
Superdry has sold its intellectual property assets in countries within the Asia Pacific region in order to boost liquidity.
The £40.7m ($50m) cash fee it receives from South Korea’s Cowell Fashion Company for the IP will be used to fund ongoing working capital requirements such as the implementation of its cost-cutting programme.
The struggling fashion retailer said it was also considering additional steps to strengthen its balance sheet as it moves forward with its turnaround programme, which could include a potential equity issue.
As part of the deal, Cowell will own and use the Superdry brand in key APAC markets, starting in South Korea before extending to other regions including China.
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Superdry will retain rights to the brand in Australia, Bangladesh, India, New Zealand, Sri Lanka and Pakistan.
The fashion retailer will work closely with Cowell providing “certain support and know-how” relating to the brand for the first two years after the deal for an additional management fee of £814,335 ($1m).
Superdry has a right of first refusal to buy back the assets if its new partner wishes to sell or allow IP registrations to lapse.
Superdry chief executive Julian Dunkerton said: “This agreement offers the Superdry brand a fantastic opportunity to expand its global reach, whilst providing additional funding to help deliver our turnaround programme in the face of the challenging consumer landscape.
“I’m absolutely thrilled by the opportunity to work together with Cowell to create inspiring products consistent with our brand heritage and build out across the APAC market.”
Earlier this month, the fashion retailer hired advisors from Interpath Advisory to produce a cost-cutting plan as it battles against “challenging market conditions”.
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