(Bloomberg) -- Superdry Plc has struck a deal to sell its brand in Asia Pacific for $50 million and is also considering a plan to raise equity, as the struggling British retailer seeks to shore up it balance sheet.   

The company, known for its logo T-shirts and bright colors, said Cowell Fashion Company Ltd. will own and use the Superdry brand in several countries in Asia Pacific including South Korea and China. Net proceeds from the sale will be used to boost liquidity and fund ongoing working capital requirements.

However, the company retained operations in India, Bangladesh, Pakistan, Sri Lanka, Australia and New Zealand, it added. It is mulling additional steps to strengthen its balance sheet, including a potential equity issue. 

Superdry has been trying to turnaround its business for the past few years and has suffered from shipment issues in its wholesale business. Earlier this month, the company hired turnaround and restructuring firm Interpath after securing a loan late last year with specialist lender Bantry Bay Capital, backed by US activist Elliott Investment Management. 

This transaction strengthens the company’s balance sheet significantly, moving it into a net cash position, Wayne Brown, an analyst at house broker Liberum, wrote in a note. 

The stock rose as much as 7.4% in London on Wednesday morning. The shares have lost almost one-third of their value over the past year, taking Superdry’s market capitalization to £94.2 million ($116 million).

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