Online fashion retailer Asos is putting 295 million pounds (334 million euros) on the table for labels Topshop, Topman, Miss Selfridge and HIIT from retail group Arcadia which went bankrupt.
The British fashion group went bankrupt in November last year, partly as a result of the Covid crisis. Last week it became known that Asos had a strong interest in some of the group's brands and that exclusive negotiations were ongoing.
Asos is buying the four brands mentioned above and the remaining stock. The company will pay 265 million pounds (300 million euros) for the labels and another 30 million pounds (34 million euros) for the stock, reports the BBC. The stores are not included in the deal.
CEO Nick Beighton said the acquisition of the brands would accelerate Asos' mission to become "the number one destination for fashion-loving twenty-somethings around the world." The CEO also said he was delighted Asos was able to acquire the brands, especially given the strong competition. He also believes the brands are a great fit for the platform.
Three more to go
Meanwhile, Arcadia's administrators have also confirmed the deal. Around 300 employees responsible for design and purchasing at the various labels will be able to work for Asos. It is not clear what will happen to the retail staff. Some fear around 2,500 people may lose their jobs.
There are now three Arcadia brands that do not yet have a new owner: Dorothy Perkins, Wallis and Burton. Boohoo, which has also bought Debenhams, might take them over. Evans, another former Arcadia brand, was bought by City Chic at the end of last year.