In a strategic move to navigate ongoing challenges, Superdry is reportedly in discussions to sell its brand and intellectual property rights in the US and the Middle East. This development comes in the wake of a challenging trading period, with the fashion brand seeking to alleviate financial pressures and secure its future.
While Superdry has previously divested brand rights in international markets, the potential sale of rights in the lucrative US market represents a significant shift in strategy. Although awaiting official confirmation, sources indicate ongoing talks with potential buyers, aiming to generate substantial funds, potentially in the tens of millions of pounds.
Founder-CEO Julian Dunkerton’s efforts to fortify the company’s financial stability have been intensified, reflecting in a 5% increase in share prices following a positive report in the Telegraph after the Christmas break. Presently, Superdry’s share price hovers just below 36p, resulting in a market capitalization of less than £36 million—significantly lower than its valuation of billions five years ago.
The timeline for concluding deals in the US and Middle East remains uncertain. However, insiders suggest that negotiations for the Middle East are relatively advanced, while potential delays in the US deal have been noted due to changing interest from a prospective buyer.
This potential strategic move aligns with Superdry’s recent initiatives, including a licensing joint venture with India’s Mukesh Ambani and the sale of intellectual property rights in South Korea, China, and other parts of Asia. Julian Dunkerton’s return in 2019 aimed at revitalizing the brand, yet challenges persist, compounded by the prolonged impact of the pandemic on Superdry’s recovery efforts.
