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Asos buys Topshop and Miss Selfridge brands for £295m

01/02/2021

The online fashion retailer Asos is the new owner of Topshop and other leading brands from Sir Philip Green’s Arcadia empire after a £295m deal that puts more than 2,500 jobs at risk.

The deal also includes Topman, Miss Selfridge and HIIT, which were put up for sale after Arcadia collapsed into administration last year.

However, Asos – which only operates online – has not agreed to buy any of their 70 stores, putting the jobs of 2,500 high street shop workers at risk. Only 300 head office staff will be saved as part of the deal, to help Asos with design, buying and retail partnerships. It has paid £265m for the brands and £30m for stock.

Arcadia Group as a whole employed 13,000 staff and had 500 stores across the UK when it entered administration in November.

The Asos chief executive, Nick Beighton, said he was “extremely proud” of the deal. “The acquisition of these iconic British brands is a hugely exciting moment for Asos and our customers and will help accelerate our multibrand 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.”

The online retailer, which confirmed last week it was in exclusive negotiations with Arcadia’s administrators after the Guardian first revealed the talks, will complete the takeover by Thursday.

A report by the administrators Deloitte, seen by the Guardian, suggests Sir Philip Green’s family is likely to receive £50m from the sale. However, more than 1,000 suppliers and landlords to the high street fashion chain will get less than 1% of the money owed to them.

Asos is believed to have beaten other potential bidders including the Chinese fashion retailer Shein, Authentic Brands, the US owner of the Barneys department store – which was linked to a joint bid with JD Sports – and the billionaire Issa brothers, who in October announced they were buying Asda for £6.8bn.

 

From The Guardian

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