Asos is understood to be in talks to sell Topshop to Forever 21 and Ted Baker owner Authentic Brands Group.
The online fashion giant, which will publish its delayed full-year results next week, is at the early stages of a process that could see it offload what was once one of the high street’s most popular brands.
According to Sky News, city sources confirmed that a sale was not certain to proceed at this time, and that the price tag on Topshop was unclear.
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Asos CEO Jose Antonio Ramos Calamonte, who took over the reigns of the retailer last year promised to “refresh the culture” unveiling his 12 month turnaround plan.
He focused on a number of “decisive, short-term operational measures to simplify the business, alongside steps to unlock longer-term sustainable growth”.
But amid soaring inflation and dampened consumer spending the retailer has struggled, warning last month that its profits would fall to the lower end of its guidance.
The warning came as sales dropped for the fourth consecutive quarter, falling 15% during the period as a result of a “weaker than expected” July and August amid the wet weather.
The business is set to report a second half adjusted EBIT of more than £38m, resulting in a full-year adjusted EBIT loss of no more than £31m.
Broker Shore Capital said that previous guidance had projected second half profits to be at the “lower end of the guided range of £40m and £60m”.
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