Expanding its reach furthermore, E-retailer Asos took millennial’s favorite Top Shop as well as its sister brands Topman, Miss Selfridge and the activewear brand HIIT under its giant umbrella. Formerly owned by Arcadia Group’s fashion tycoon, Philip Green, these brands were sold at a whopping amount of $364mn.
The British fast-fashion giant took it to its social media account and made an official announcement about the much-speculated acquisition as well. The deal is expected to go on-floor on February 4.
The rumours are true... @Topshop & @Topman are now part of the ASOS family
— ASOS (@ASOS) February 1, 2021
With Asos being an e-retailer, has not agreed to buy any of the brand’s physical stores putting almost 2500 jobs at risk. This also includes the brands’ warehouses and head offices. Only 300 head office staff would be saved as part of the deal to help Asos with design, buying and retail partnerships.
The deal is said to be ‘financially attractive’ as the four brands generated a combined £1 billion ($1.4 billion) in revenues in 2019, though this fell to around £265 million ($364 million) in 2020 because of the global pandemic. The purchase will bring around £20 million ($27.5 million) in one-off restructuring and transaction costs, ASOS said.
The Arcadia Group which also owns Dorothy Perkins, Wallis, Evans, Burton, and Outfit brands, fell into administration in December, putting more than 13,000 jobs at risk, terming it UK's biggest corporate casualties of the COVID-19 pandemic so far.
(Source- Business Insider, The Guardian)
