British clothing retailer Superdry Plc has further streamlined its business activities. On Wednesday, the company announced that it would bring its intellectual property rights for the Indian, Sri Lanka and Bangladesh markets, including trademark rights, into a specially founded joint venture with the Indian retail group Reliance Retail Ventures Limited.
The Reliance subsidiary Reliance Brands Holding UK Ltd. will hold a 76 percent majority stake in the joint venture, with Superdry taking a 24 percent stake, according to a statement. The clothing retailer expects net proceeds of approximately 28.3 million British pounds (32.7 million euros) from the sale of the relevant rights to the joint venture.
Following the completion of the proposed transaction, which still needs to be approved by Superdry’s shareholders and creditors, Reliance Brands Limited will continue to manage the brand’s operations in the three markets, it said in a statement. The Indian clothing retailer was previously Superdry’s local distributor.
Back in March, Superdry sold the intellectual property rights for “numerous key Asian markets” to South Korean textile group Cowell Fashion Company Ltd as part of its ongoing austerity program. India, Sri Lanka and Bangladesh were still excluded. Now the company has also found a solution for these countries.