Asos declined a much higher bid for Topshop and Topman from Shein and Authentic Brands Group (ABG) in favour of its new joint venture with Heartland, reports have revealed.
Last week, the online fashion giant agreed to sell a 75% stake in Topshop and Topman to Heartland, an investment firm owned by the family of retail billionaire Anders Povlsen, for £135m in a deal that valued the two brands at £180m.
Though The Sunday Times reported that Asos declined a much higher bid of £215.5m made jointly by fast fashion giant Shein and ABG.
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Asos considered the agreement with Heartland to be in the “best interest of shareholders,” as it provides the online retailer with “design and distribution rights” for the Topshop and Topman brands in exchange for a royalty fee, allowing it to keep marketing and selling the brands online.
It will relaunch Topshop.com as part of the venture, but said there are no immediate plans to open physical stores.
Asos CEO José Antonio Ramos Calamonte said: “We will consider it for sure but we have no specific agreement to open a certain number.”
On the venture, Calamonte said: “The joint venture and the launch of the refinancing will accelerate our strategy to both offer customers the best and most relevant product and to turn Asos into a company that delivers sustainable, profitable growth.”
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