Online Retailer Asos to Buy Topshop Brand for $405 Million
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U.K. online fashion retailer Asos Plc agreed to buy Topshop, one of Britain’s best-known main street retail brands, and other labels for 295 million pounds ($405 million), planning to close all the stores.
The online fashion retailer agreed to buy Topman, Miss Selfridge and HIIT brands from Arcadia Group, the insolvent retail empire of Philip Green, in the all-cash transaction. The purchase includes 30 million pounds of inventory.
Asos fended off competition from Authentic Brands Group LLC, owner of Barney’s, SheIn Group Ltd., a Chinese online fast-fashion retailer, and fashion retailer Next Plc. Topshop and the other brands had combined revenue of about 1 billion pounds in 2019.
Asos wants to expand its customer base and has a strong businesses in the U.S. and Europe, where Topshop brand-recognition is high. The fashionable label has struggled in recent years since Green’s retail empire faltered after the sale of his BHS department store in 2015 and as pandemic lockdowns further crimped sales.
Britain’s online fashion retailers having been buying up labels that have dominated the country’s shopping centers for decades. Last week rival Boohoo Group Plc agreed to buy the Debenhams brand for 55 million pounds.
Their interest is only in the brand and website, not physical stores. This means hundreds of outlets will close and the position of thousands of employees are at risk in an industry that already shed more than 100,000 jobs last year.
A separate process to sell the remainder of Arcadia’s brands, including Wallis, Dorothy Perkins and Burton, is still under way.
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