ASOS Buys Topshop and Its Sister Brands in $405 Million USD Deal
Just over a month after the retailer’s parent company filed for bankruptcy.
Arcadia, the company that owns Topshop and its sister brands like Topman and Miss Selfridge, saw a rough year in 2020 like many other retailers due to the lasting impacts of the coronavirus pandemic. In December 2020, the group filed for bankruptcy after having shut down all of its U.S. stores in 2019. Now, e-commerce giant ASOS has bought the apparel company in a £295 million GBP (approximately $405 million USD) deal, according to BBC.
Although not much is known about the acquisition so far, ASOS will not be taking over Arcadia’s stores, but only its stock and brands. The deal encompasses £265 million GBP (approximately $364 million USD) for the brands and £30 million GBP (approximately $42 million USD) for the stock.
“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,” the e-tailer’s chief executive Nick Beighton said in a statement. “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.”
So far, Arcadia has confirmed that roughly 300 employees in design, buying and retail will be transferred directly to ASOS. However, not much is known as to what will happen with the company’s store networks. The new deal, which is expected to complete on February 4, reportedly puts around 2,500 jobs at risk.