ASOS swoops in on Arcadia fashion brands

Topshop Store 5

Online fashion retailer ASOS is to take over ownership of fashion brands Topshop, Topman, Miss Selfridge and HIIT from stricken Arcadia group in a £265m deal.

However, crucially, ASOS won’t be taking on any of the high street shops pwned by the brands as part of the deal, which means there are almost certainly likely to be huge job losses.

Arcadia and Green

Arcadia collapsed into administration late last year and was the fashion empire owned by despised capitalist Sir Philip Green, whose name has become a byword for corporate greed and was once referred to as the “unacceptable face of capitalism”. 

Green also once owned iconic high street brand BHS, British Home Stores, which he sold for £1 and which was later discovered for have a £571m hole in its pension.

ASOS said the acquisition was part of a plan to accelerate its ‘Brands strategy’ and would be complementary to the firm’s existing brand portfolio and give its customers greater choice.

“We are extremely proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands”, Nick Beighton, ASOS CEO, said. 

“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. 

Developing brands further

“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.”

Strategic Opportunity

This acquisition represents a compelling strategic opportunity in support of our mission to become the number one destination for fashion loving 20-somethings worldwide, ASOS said in a stock market statement. 

“These are strong brands that resonate well with our core customer base. Brand equity is strongest in the UK and they have an established presence in both the US and Germany, two of our key strategic markets.”

ASOS’ shares were trading 3.6% higher at £46.38 following the news on Monday.