ASOS has rescued Sir Philip Green’s flagship Topshop brand for £295 million.
The online behemoth has acquired Topshop, Topman, Miss Selfridge and HIIT from the administrators of Arcadia, two months after its collapse. However, all stores will close, with only 300 jobs saved.
In total, ASOS will pay £295 million for the brands, plus a further £30 million for all stock.
It will pay an extra £30 million to account for any outstanding liabilities and creditor orders.
About 300 employees across design, buying and retail partnerships will transfer to ASOS – at least 2,500 retail jobs will be lost as a consequence of the takeover.
The transaction excludes the Topshop, Topman and Miss Selfridge store network which comprises about 70 leasehold sites.
Completion of the transaction is expected on February 4, 2021.
ASOS chief executive Nick Beighton said its takeover of the four brands will resonate with its core customer base of 20 somethings in the United Kingdom, and he said they were very proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands, and said that the acquisition of those iconic British brands was a hugely inspiring moment for ASOS and their customers and would serve to accelerate their multi-brand platform strategy.
He said that they’ve been fundamental to driving their recent growth online, and under their ownership, they will develop them further, using their design, marketing, technology and logistics expertise, working closely with key strategic retail partners in the United Kingdom and around the globe.
The transaction follows the purchase of Evans to City Chic on December 23, 2020, for £23 million.
Sir Philip Green’s Arcadia retail empire collapsed into administration on November 30, under the weight of a £750 million debt pile.
Administrators last month confirmed all 21 Outfit stores, alongside a further 10 shops for other Arcadia brands would close, in a move which would affect more than 700 jobs.
The process to secure new owners for Burton, Dorothy Perkins and Wallis continues to be ongoing via exclusive discussions with a possible buyer.
Fast fashion website Boohoo is understood to be the leading bidder, after it confirmed a £55 million takeover of 200-year-old Debenham in January.
Boohoo Group Plc confirmed that it’s in exclusive negotiations with the Administrators of Arcadia over the acquisitions of the Dorothy Perkins, Wallis and Burton, excluding HIIT brands.
It comes less than a week after Boohoo’s rescue bid for Debenhams was given the go-ahead, a move that will see the website saved, but 118 stores will disappear from the high street.
However, it’s not a rescue deal if jobs are not being saved. It may keep the brand alive, but in actuality, they don’t really care who they buy from, or what you buy as long as they’re lining their pockets, because that’s vastly more important.
They probably won’t even purchase the same clothes, as their garments are cheaper. They just want the brand name which is so wrong, and those that have bought up these companies have destroyed not just the high street shops, but also good quality clothes.
The high street has been dying for years, and it’s largely because of online shopping. Ultimately, everything will be online and all shops will disappear from our high streets, but people like to go into shops to have a look around and try things on, now it will all be delivered to your door.
All they’ve done is purchase stock, very little else and the death of Woolworths countless years ago should have had all of these companies evaluating their business plans and future-proofing, and online shopping can be such a pain, particularly if what you ordered isn’t what you wanted or expected and you need to return it because it takes so long to return it and get your money back, so shopping instore is much better, but then this is life as we know it, so get used to it folks!