Superdry in licensing talks with Indian giant Reliance

Struggling fashion retailer Superdry is reported to be on the verge of announcing a joint venture with India’s Reliance Brands to boost its growth in that massive market.

Sky News reported that a deal could be unveiled within days and that it would “release tens of millions of pounds to bolster its fragile balance sheet”.

Mumbai-based Reliance is India’s largest retailer and the deal is said to be worth £25 million to the UK firm. It would be similar to the Asia-Pacific deal it struck in March with South Korea’s Cowell Fashion Company. That was worth around £34 million.

Superdry has faced funding challenges of late and founder/CEO Julian Dunkerton has been working to raise funds as the cost-of-living crisis dents the firm’s performance.

Other deals it has stuck include one in August for a £25 million secondary lending facility with Hilco Capital. That came in addition to its existing up to £80 million deal with Bantry Bay Capital.

Superdry raised £12 million from a share sales this spring too, but those who bought in at over 76p a share will be nursing paper losses because the shares were worth less than 42p each on Tuesday.

Superdry hasn’t commented on the story.