Asos Buys Topshop Brand for $405 Million, Plans Online Push Leave a comment

Coronavirus Crisis Set To Hit U.K. Retails Sales

Photographer: Jason Alden/Bloomberg

Asos Plc agreed to buy Topshop, one of Britain’s best-known apparel brands, and several other labels for 295 million pounds ($405 million), as online fashion retailers swoop in to purchase well-known retail names that are closing stores.

Arcadia Group, the insolvent retail empire of Philip Green, will sell the Topman, Miss Selfridge and HIIT brands to Asos in the all-cash transaction, according to a statement Monday. The purchase includes 30 million pounds of inventory. Asos shares rose as much as 4.6% in London.

“This move is a market-share land grab” to boost growth in Europe and the U.S., wrote Aneesha Sherman, an analyst at Sanford C. Bernstein.

Labels that have dominated the country’s shopping centers for decades have recently become targets for e-commerce. Last week rival Boohoo Group Plc agreed to buy the Debenhams brand for 55 million pounds. As the online retailers have little interest in running physical stores, that’s leading to the loss of thousands of jobs in an industry that already shed more than 100,000 positions last year.

Asos isn’t taking on any of the shops linked to the four brands, meaning about 70 outlets will close. However, the retailer would consider allowing a flagship store on London’s Oxford Circus to keep selling Topshop clothes through a third-party arrangement, Chief Executive Officer Nick Beighton said on a call with journalists. No decision has been made.

Faltering Empire

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *