The deal includes Sir Philip Green's Topshop, Topman, Miss Selfridge and HIIT brands, but the future of the brands’ stores is in doubt
Asos has bought the crown jewels of bust retail group Arcadia, Topshop, Topman, Miss Selfridge and HIIT, in a deal worth £295m.
The FTSE 100 online retailer described the buyout as a “compelling strategic opportunity”, as it moves to become the leading shopping destination for beauty and fashion.
Asos agreed to pay £265m for the brands and has purchased £30m worth of stock.
However, the agreement does not mention the future of the brands’ stores, which is expected to complete on 4 February.
Asos said it would take around 300 staff across designs, buying and retail partnerships to its headquarters and that a review of its supply chain would be carried out.
It is thought therefore the deal could put up to 2,500 jobs at risk.
“We are extremely proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands,” said Asos’ CEO Nick Beighton.
“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.”
Asos has stocked products from Topshop since 2019 and was tipped as the frontrunner to take on the brands from Sir Philip Green’s failed retail empire last week.
“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.”
Asos is expected to keep the brands’ identity and customer bases largely intact, and will add the cluster to its Venture Brands portfolio alongside AsYou, Collusion and Reclaimed Vintage.
As well as the £295m agreement, Asos expects to inject £20m in restructuring the brands, but being a success story of the pandemic, Asos can afford the pay out.
Sales figures over the festive period were up almost a quarter, surpassing its growth expectations.
Meanwhile, Q3 profits increased 329% following a surge in demand for the retailer's cosmetics and activewear categories.
Over the course of the pandemic, Asos has reported an uptick in active customers to more than 24 million.