Superdry mulls sale of US and Middle East brand rights

Sports and lifestyle brand Superdry is believed to be mulling the sale of its brands rights in the US and Middle East in an attempt to strengthen liquidity.

The retailer is currently said to be in discussions with possible buyers in each market regarding the sale of intellectual property rights, according to a report by The Telegraph.

The media outlet added that such talks were more advanced in the Middle East than they were in the US, where the interest of one bidder had begun to subside.

The news comes shortly after Superdry issued an additional profit warning last week when it reported that trading performance had been “significantly below management expectations”.

While the company’s ongoing cost efficiency strategy was said to be on track to draw in 35 million pounds of cost savings, Superdry noted that it had faced a “challenging consumer retail market” and an “abnormally mild autumn”, delaying sales across its divisions.

Similar sales of brand rights have already been made at Superdry, which earlier this year sold Asia Pacific intellectual property assets to South Korea’s Cowell Fashion Company for 50 million pounds.

Later, in October, the company also offloaded its assets in India, Sri Lanka and Bangladesh to Reliance Brands Holding via a joint venture deal.