// Asos scoops up Topshop, Topman, Miss Selfridge and athleisure brand HIIT for £330m
// Asos paid for the brands’ goodwill & stock on hand, and it will also take on certain liabilities for forward committed stock orders
// The brands’ network of 70 stores is not included in the deal – putting 2500 jobs at risk
Asos has acquired Topshop and other three Arcadia Group brands for £330 million, in a deal that does not include the brands’ stores and places 2500 jobs at risk.
The online fashion retailer has agreed to buy Topshop, Topman, Miss Selfridge and athleisure brand HIIT for £265 million.
Administrators for Sir Philip Green’s retail empire also said Asos paid an additional £65 million for current and pre-ordered stock, bringing the grand total of the deal to £330 million.
READ MORE:
- Sir Philip Green’s family due to receive £50m from Topshop sale
- Arcadia collapsed under debts of £750m, Deloitte says
The deal will see 300 employees transfer to Asos but the future of 2500 Arcadia employees remains at risk since the network of 70 Topshop and Miss Selfridge stores is not included in the deal.
Asos paid for the brands’ goodwill and stock on hand, and it will also take on certain liabilities for forward committed stock orders.
Completion of the transaction is expected on February 4, 2021.
Asos said its acquisition of the four brands will “resonate” with its core customer base of “20-somethings” in the UK.
It added that it would also see £20 million worth of one-off restructuring and transaction costs.
“We are extremely proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands,” Asos chief executive Nick Beighton said.
“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.”
This transaction follows the sale of Evans to Australian business City Chic on December 23, 2020 for £23 million.
Arcadia Group, which also owns Burton and Dorothy Perkins, fell into administration in November, putting 13,000 jobs and over 400 shops at risk.
The process to secure new owners for Burton, Dorothy Perkins and Wallis remains ongoing.
Boohoo confirmed on Friday that it was in exclusive talks to buy the Burton, Dorothy Perkins and Wallis fascias for just over £25 million.
Boohoo recently bought the Debenhams brand and website – but not its 118 stores.
Click here to sign up to Retail Gazette‘s free daily email newsletter
