Asos has turned down a far greater deal for Topshop and Topman from SHEIN and Authentic Brands Group (ABG) in favour of a new joint venture with Heartland.
Last Monday, the online fashion giant agreed to sell 75 per cent of Topshop and Topman to Heartland, an investment business founded by the family of retail tycoon Anders Povlsen, for £ 135 million, valuing the two brands at £ 180 million.
Though it was believed that Asos declined a far bigger deal of £ 215.5 million made by fast fashion behemoth SHEIN and ABG.
Asos deemed the agreement with Heartland to be in the “best interests of shareholders,” as it grants the online retailer “design and distribution rights” to the Topshop and Topman brands in exchange for a royalty fee, allowing it to continue marketing and selling the brands online.
The company will relaunch Topshop.com as part of the initiative, although there are no imminent plans to construct physical locations.
Asos CEO José Antonio Ramos Calamonte said: “We will consider it for sure but we have no specific agreement to open a certain number.”
