Fashion brand Superdry has confirmed it has ended its Chinese joint venture with Trendy, following a review of its long-term business strategy in the region.
The retailer said the move leaves it “free to determine how it will trade in China in the future” and brings to an end the joint venture it formed with Trendy in 2016 with 25 owned and 41 franchise stores.
Superdry said all owned stores are due to close in China by the end of August, with the franchise stores to close by the end of the year.
The move will cost Superdry £6m, half of which will be recognised in the first half of the current financial year. The retailer said it did not expect to incur any further costs as part of the winding up.
The brand said the decision to end the joint venture had been bought forward by the impact of the coronavirus and the split with Trendy had been “amicable”.
Superdry chief executive Julian Dunkerton said the retailer still saw a “huge opportunity” in China.
“I believe that China represents a huge opportunity for Superdry in the longer term. As the way people are shopping there changes, it makes sense for us to shift our focus to the growth channels of online and wholesale.
“Combined with the improvements we are making to our product ranges, I am confident that this is the right time for us to take back full control of our brand in China and to re-position our operations in the region to deliver profitable future growth for Superdry.”
No comments yet