LONDON, UK: Superdry has signed an IP Transfer Agreement with Cowell Fashion Company, a listed company based in South Korea, for the sale of Superdry’s intellectual property (IP) assets in certain countries within the Asia Pacific (APAC) region, for an upfront fee of $50 million USD, payable in cash.
Cowell Fashion Company is an experienced local operator within the APAC region and has been listed on the South Korean stock exchange since April 2015.
Cowell’s operations focus on licensing and manufacturing apparel products for established global brands across product areas including underwear, sportswear, and accessories, and they are ideally positioned to appreciate and maximise Superdry’s potential across the region.
The Agreement means Cowell will own and use the Superdry brand in key APAC markets, starting with its home market of South Korea and extending to others including China, with Superdry and Cowell working together to develop products relevant for those markets.
Superdry plans to build a collaborative partnership with Cowell, capitalising on the shift in consumer preferences in Asia towards lifestyle product, by working with Cowell to design and develop market-relevant product which remains consistent with the Superdry brand heritage.
Superdry will provide certain support and know-how relating to the Superdry brand to Cowell Fashion Company during the first two years following completion of the Sale. In consideration for these services, an additional management fee of $1.0 million USD, comprising two payments of $500,000 USD each, is also payable, in cash, directly to Superdry, with the first instalment being payable on completion and the second instalment being payable on the first anniversary of completion.
Speaking today about the Agreement with Cowell, Julian Dunkerton, Superdry’s Chief Executive Officer and Founder, said: “This agreement offers the Superdry brand a fantastic opportunity to expand its global reach, whilst providing additional funding to help deliver our turnaround programme in the face of the challenging consumer landscape. I’m absolutely thrilled by the opportunity to work together with Cowell to create inspiring products consistent with our brand heritage and build out across the APAC market.”
Cowell Fashion Chairman Lee Sun-seop stated his aspirations earlier today: “The collaboration between Cowell Fashion, which has state of the art planning, design, and production know-how, and Superdry PLC, which has a long history of innovation and brand power, can be said to be the beginning of a paradigm shift in the Korean fashion industry. With the two companies aligned together through explosive synergy, the plan to grow Superdry into a Superbrand across Asia is an exciting proposition as long term partners.”
