Superdry has signed an IP joint venture agreement with Reliance Brands Holding UK Ltd whereby Reliance Brands will own 76% and Superdry will own 24%.

This strategic move, which has been approved by Superdry’s board and is awaiting approval by shareholders and lenders, includes the sale of the UK retailer’s intellectual property assets, including the Superdry brand and related trademarks in the South Asia region.

Reliance Brands, who began its exclusive franchise partnership with Superdry in India in 2012, will continue to manage brand operations in the South Asia territory.

Superdry believes that partnering with Reliance will “focus on growing its brand and increasing sales in its more established territories, where it has the strongest expertise.”

The consideration for the sale of the South Asian IP is £40m, which is estimated to result in Superdry receiving gross cash proceeds of £30.4m (approximately £28.3m net of fees and taxes).

The British clothing company says the brand has expanded rapidly in India since its partnership with Reliance Brands began in 2012: “Considering the backdrop of a growing Indian economy, a growing population of affluent shoppers, and ever-increasing apparel consumption rates, the Superdry brand in the market has attractive potential.”

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In March this year Superdry also sold its Asia Pacific region intellectual property (IP) assets to South Korea’s Cowell Fashion Co in a GBP40.7m (US$50m) deal.

The following month (April) Superdry issued a warning that its sales growth did not meet expectations. The company said this was partly due to the cost-of-living crisis and poor weather which significantly affected spending and footfall.

Superdry founder and CEO Julian Dunkerton said at the time it had no doubt been a difficult year for the business and the market conditions had been extremely challenging.

He added: “The business will emerge from the current turbulence stronger than ever.”

This summer (August) Superdry was forced to take a £25m loan from restructuring specialist Hilco due to its recent financial struggles.