Later today, ASOS is likely to announce the deal with Arcadia Group disclosing further details. It will be likely running the Topshop store in partnership with JD Sports.
On Saturday, January 30, a SkyNews report suggests that popular British fashion retailers ASOS is likely to announce a $411 million deal that involves buying TopShop and Miss Selfridge. Ahead of the stock exchange, ASOS is also likely to sign an agreement with Arcadia Group’s administrators.
The company said that it was in exclusive talks with British tycoon Philip Green to buy the Topshop, Topman, Miss Selfridge and HIIT brands. This could also probably the biggest transaction by a British fashion retail brand in decades.
The Arcadia Group, the owner of Burton and Dorothy Perkins, fell into administration last November 2020. This move has put 13,000 jobs at risk. However, the ASOS deal will help to alleviate some of its pain. It will interesting to hear from ASOS whether it retains only top-shop or even other franchises of the Arcadia Group. As Sky News mentions:
“By taking over TopShop, ASOS – which was founded under the name As Seen On Screen in 2000 – will secure one of the most symbolically potent transactions in corporate Britain for decades”.
JD Sports to Partner with ASOS to Run TopShop Stores Together
As per the market development, JD Sports is likely to run TopShop stores in partnership with ASOS. It means that ASOS won’t be running any shops directly. Also, it is well-known that JD Sports and US brand conglomerate Authentic Brands has been maintaining a high-street presence for Topshop while having an official license from ASOS.
However, some people familiar with the matter still note that the discussions are in the preliminary stage. As ASOS plans a branch relaunch, it isn’t clear if ASOS wants to run the shop via a third-party in the near term. Neither it is clear if a possible agreement can link the stores to the online business. This will be a key part of the ASOS deal.
JD Sports is likely to be creating a fighting fund to pursue acquisitions. However, it shall happen only after examining the deal to buy both Topshop and Debenhams. The takeover of Topshop will likely cost ASOS around £250 million. An additional £40 million will come in the form of stock options. It will interesting to get more details about the deal ahead today.
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