Reliance Brands signs agreement to acquire majority ownership of Superdry for Indian territory
Superdry, worn by celebrities such as David Beckham, Leonardo DiCaprio, Pixie Lott and Kate Winslet, has entered into a joint venture agreement with Reliance Brands for the sale of Superdry’s intellectual property assets in India, Sri Lanka, and Bangladesh for £40 million (nearly Rs 405 crore).
Superdry will invest £9.6 million in the alliance, which will be set off against the company’s receivable of £40 million from Reliance.
For the financial year to 30 April 2023, the South Asian IP generated around 1.8% of total Superdry group sales and contributed revenue of £11 million and profit before tax of around £2.6 million.
“India represents an incredible opportunity for Superdry, and our existing relationship with Reliance means we will be able to hit the ground running. Under our new partnership, the brand will continue to accelerate and build on our success to date to become a major force in the Indian fashion market,” said Julian Dunkerton, co-founder and chief executive of Superdry.
Superdry UK will keep a stake in the brand for the Indian territory and will continue to support brand development.
The transaction, which has been approved by the Superdry board, will also require the approval of the company’s shareholders and lenders.
Following the completion of the transaction, Superdry expects to receive around £28.3 million net of transaction costs and taxation.
The funds will be used to bolster the company’s balance sheet, boost liquidity, and fund its ongoing working capital requirements as part of a turnaround plan.
Superdry entered India in 2012 in partnership with Reliance Brands. Reliance Brands is a venture of Reliance Retail Ventures Ltd (RRVL) and it partners with independent fashion brands in segments
