Asos confirms £330m takeover of Topshop, Topman, Miss Selfridge and fitness brand HIIT from Sir Philip Green’s collapsed Arcadia empire – but deal does NOT include 300 shops and 2,500 store staff
- Online fashion retailer buys Topshop, Topman, Miss Selfridge and HIIT brands
- Buyer paid £265million and another £65million for current or pre-ordered stock
- Deal for prized brands does not include stores, putting thousands of jobs at risk
- Asos will take on 300 employees as part of deal set to complete this Thursday
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, which hopes the purchase will help it grow in the US, 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. The Asos share price gained 2.1 per cent in early trading today.
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.
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
A source close to the matter told AFP that the store closures would put 2,500 jobs at risk – and the deal is expected to complete on Thursday.
Arcadia’s administrators Deloitte confirmed to MailOnline that the overall deal is worth £330million.
An Asos spokesman said the four ‘iconic Arcadia brands would ‘resonate’ with its youthful customer base in Britain.
‘This acquisition represents a compelling strategic opportunity in support of our mission to become the number one destination for fashion loving 20-somethings worldwide,’ they said.
‘These are strong brands that resonate well with our core customer base. Brand equity is strongest in the UK and they have an established presence in both the US and Germany, two of our key strategic markets.’
And 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 Asos distribution centre near Barnsley in South Yorkshire
Workers at the Asos distribution centre near Barnsley in South Yorkshire
‘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.
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.
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’
If a deal is struck there it would complete the break-up of Sir Philip’s empire.
Established in 2000, Asos has grown quickly with its shares closing last Friday at 4,735p, valuing the business at £4.47billion.
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.
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