// Asos says it was looking into keeping the Topshop flagship – but it’s not a key focus
// CEO Nick Beighton: Asos might take on the flagship’s lease with a third-party partnership, but no intention of buying it outright
// The Topshop flagship is not part of the Arcadia assets being overseen by Deloitte
Asos has said it might keep Topshop’s Oxford Circus flagship after buying some brands out of Arcadia Group’s administration – but stressed it was not a key focus.
Asos chief executive Nick Beighton said the retailer was “looking at” the possibility of keeping hold of the store, but admitted the move was “not a priority”.
He said Asos was “not a store business” and that it would not change its business model as an online retailer, but it was weighing up the benefits of continuing to operate from the central London location in some capacity.
- Asos acquires Topshop, Topman & Miss Selfridge in £330m deal
- Sir Philip Green’s family due to receive £50m from Topshop sale
- Topshop flagship could be saved if Asos-Arcadia deal succeeds
Asos confirmed that its £330 million deal to buy the Topshop, Topman, Miss Selfridge and HIIT brands from Arcadia’s administrators at Deloitte would not include stores.
However, the Topshop flagship is not part of the Arcadia assets being overseen by Deloitte.
The building it is housed in – 214 Oxford Street building, which also houses Nike and Vans stores – is controlled by a subsidiary, Redcastle Ltd, to which KPMG is the administrator and real estate agents Eastdil and Savills were recently appointed oversee the sale of the site.
The deal Asos announced this morning gives it the rights to sell the four Arcadia brands it has acquired through different channels.
Retail Gazette understands that Asos was reviewing strategic retail partnerships, and that it has been approached by KPMG about the flagship Topshop store.
If Asos were to look at keeping the flagship, it would be through a retail partnership model.
Beighton himself said Asos would discuss the possibility of taking on the lease of the Topshop flagship with a third-party partnership, but there was no intention of buying it outright.
KPMG said that before the lockdown, which has closed all non-essential retail stores, the 100,000sq ft Topshop flagship welcomed 400,000 customers through its doors each week.
The store, which boasted a DJ booth, nail bar and food stalls, was a retail sensation after it opened in 1994.
Last year, senior lender Apollo Global Management provided a £310 million four-year loan, secured against the site.
It is understood the Arcadia pension fund would benefit from anything generated from the sale beyond the £310 million loan.
with PA Wires