Reliance’s deal with UK brand Superdry: Reliance will buy intellectual property assets of South Asia for about Rs 400 crore.

British fashion retailer Superdry has announced a joint venture with Mukesh Ambani’s Reliance Retail. Superdry will sell its intellectual property assets to Reliance Retail for $48.27 million (about Rs 400 crore).

This includes the Superdry brand and related trademarks in India, Sri Lanka and Bangladesh. After the deal, Reliance’s stake will be 76% and Superdry’s stake will be 24%. Superdry sells everything from T-shirts, shirts to shoes and accessories. In 2019, Superdry added sports and activewear to its product portfolio under ‘Superdry Sport’.

Awaiting approval from shareholders and lenders

After getting approval from its board, Superdry’s deal is now awaiting approval from shareholders and lenders. The transaction will be completed within 10 days, subject to the conditions being met within three months from the date of the agreement. At present, Superdry is facing shortage of wholesale orders. The company is also facing challenges related to funding.

Reliance is the franchise partner of Superdry since 2012.

Reliance Retail has been the franchise partner of Superdry in India since 2012. It is present at 200 points of sale in 50 cities. It has a presence in more than 2,300 Indian cities through e-commerce. Whereas Reliance operates more than 18,000 stores across India. Its presence is in about 7,000 cities and towns. It has about 50 fashion brands.