Mon, 01 Feb 2021 | BUSINESS SALE
Online fashion retailer ASOS has agreed a £295 million deal to acquire the stock and brands of Topshop, Topman, Miss Selfridge and HIIT from the administrators of Arcadia Group. The deal, which does not cover any high street stores, sees ASOS pay £265 million for the brands and £30 million for stock.
The takeover is expected to complete by Thursday February 4. 300 head office staff will make the move to ASOS, in order to assist with retail partnerships, design and buying, leaving around 2,500 jobs at risk.
The acquisition follows a similar deal last week which saw Boohoo acquire the brand of department store chain Debenhams, but none of its stores. These deals are widely seen as emblematic of a shift, accelerated by COVID-19, away from the high street and towards online retail.
ASOS described the deal as a "strategically compelling opportunity to acquire four strong, iconic fashion brands". The group’s Chief Executive Nick Beighton commented: "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."
Sir Philip Green’s Arcadia retail group went into administration in December as the impact of COVID-19 on the group’s brands exacerbated existing issues, such as an under-developed online offering and falling sales. The group’s pension scheme also has a £350 million funding shortfall.
Former Arcadia brands Burton, Dorothy Perkins and Wallis are yet to have been acquired, but are reported to be the subject of ongoing exclusive negotiations with Boohoo.
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