Asos confirms takeover of Topshop and brands Topman, Miss Selfridge and HIIT for £330million from Sir Philip Green’s collapsed Arcadia empire – but deal does NOT include its 300 stores leaving 2,500 jobs hanging in balance
Asos today confirmed it has sealed the takeover of Topshop and three other brands from the collapse of the Arcadia retail empire for £265million.
The online fashion retailer has bought the Topshop, Topman, Miss Selfridge and HIIT brands from administrators.
Administrators for Sir Philip Green’s retail group said the buyer has also paid another £65million for current and pre-ordered stock.
The deal for Arcadia’s prized brands, which will be fully funded from cash reserves, does not include its stores, putting thousands of jobs at risk.
Asos told investors this morning that it will take on around 300 employees as part of the deal, which will not include any of the brands’ stores.
Sir Philip Green and Kate Moss attend the opening of a Topshop store in New York in 2009
A man walks past a Topshop/Topman store on Princes Street in Edinburgh in December 2020
Sir Philip’s Arcadia empire fell into administration in November owing creditors hundreds of millions of pounds and threatening more than 13,000 jobs.
Its collapse was the biggest corporate failure of the Covid-19 pandemic so far. Topshop alone had around 300 stores open before the start of the pandemic.
However a source close to the matter told AFP that the store closures would put 2,500 jobs at risk. The deal is expected to complete on Thursday.
Asos said its acquisition of the four brands will ‘resonate’ with its core customer base of ’20-somethings’ in the UK.
The Asos distribution centre near Barnsley in South Yorkshire
Workers at the Asos distribution centre near Barnsley in South Yorkshire.
Asos chief executive Nick Beighton said: ‘We are extremely proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands.
‘The acquisition of these iconic British brands is a hugely exciting moment for Asos and our customers and will help accelerate our multi-brand platform strategy.
‘We have been central to driving their recent growth online and, under our ownership, we will develop them further, using our design, marketing, technology and logistics expertise, and working closely with key strategic retail partners in the UK and around the world.’
Asos said incremental core earnings from the deal in its 2020-21 year would be offset by initial ramp-up costs.
The online fashion retailer has also bought the Miss Selfridge brand from administrators
Asos boss Nick Beighton said it is a ‘hugely exciting moment for Asos and our customers’
There would also be additional one-off restructuring and transaction costs of about £20million.
The announcement comes after Asos-rival Boohoo said on Friday that it was in talks with Arcadia administrators to buy three of its brands comprising Dorothy Perkins, Wallis and Burton in a move which will also not include any stores.
Boohoo also agreed last week to purchase the intellectual property assets of failed department store chain Debenhams.
Both Arcadia and Debenhams collapsed in December – together risking the loss of 25,000 jobs – having struggled to transition from a bricks-and-mortar business long before the coronavirus pandemic forced shoppers online.