Asos has confirmed it has acquired the Topshop, Topman, Miss Selfridge and HIIT brands for a total of £265m, placing around 2,500 jobs at risk.
The group said the acquisition marks a “compelling strategic opportunity” in support of its aim to become the “number one destination for fashion loving 20-somethings worldwide”, noting that the brands would resonate with its established customer base.
The transaction will lead to the closure of all Topshop sites, and see the Arcadia brands brought in-house, with an aim to transform them into “digital first” labels. Asos notes that they are “strong” consumer facing brands, and it sees a “significant” opportunity to drive further growth for the names globally.
It noted there was a “particular opportunity” to increase the brands’ reach and accelerate its US strategy through an ongoing partnership with US department store chain Nordstrom.
Following the move, around 300 employees across design, buying and retail partnerships will join the online business.
In addition to this, Asos said it has already worked with the administrators to “ensure future continuity” of supply and has “taken on and placed some purchase orders accordingly”.
In a statement regarding the acquisition, Asos said: “Our familiarity with these brands and our experience developing and running in house brands, together with our well-developed technology and warehouse infrastructure, gives us confidence in our ability to execute the transition with as little disruption as possible.”
Looking ahead, Asos expects any incremental EBITDA in FY21 to be offset by this initial investment and ramp up costs, and also expects to incur one-off restructuring and transaction costs of around £20m.
Nick Beighton, CEO, said: “We are extremely proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands. 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.
“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.”