Finally Topshop is bought!
British online luxury retailer Asos Plc has agreed to acquire Topshop as well as some other brands of Arcadia Group for £295 million.
Reportedly, Asos will also be buying Miss Selfridge and HIIT brands in an all-cash transaction. The acquisition will also include inventory of £30 million.
The industry analysts believe that the e-tailer’s decision could help boost growth in the US and Europe, where Topshop has a large base of customers.
What’s notable is that Asos will not be buying stores of any of the aforementioned brands and the entire focus will be to sell through e-commerce.
And if that’s the story, then around 70 of brands’ stores will close resulting in more job losses and more worries for the people.
However, as reported in Bloomberg, a flagship store in London’s Oxford Circus will continue to sell Topshop dresses through a third-party arrangement.
Going forward, Asos has said that it intends to strengthen Topshop’s alliance with Nordstrom and has also committed to an order of £35 million for apparels, which would put the total cost of the deal at £330 million.
It will be interesting to see what next Asos initiates to build the business.
Meanwhile, Boohoo is still in talks to acquire other brands of Arcadia Group, which includes Dorothy Perkins.