Online fashion giant Asos is in exclusive talks to buy Sir Philip Green’s retail empire Arcadia
- Asos in talks about buying Topshop, Topman, Miss Selfridge and HIIT, sold through Burton
- If the deal goes through, the brands could become online businesses
- No mention of Dorothy Perkins and Wallis, two unsold Arcadia brands
Asos has confirmed that it is in exclusive talks to buy the collapsed retail empire Arcadia from Sir Philip Green. This could lead to some of the UK’s best-known brands returning as online-only businesses.
The online fashion giant, which sells to 20, said it was in talks with administrators to acquire Topshop, Topman, Miss Selfridge and HIIT, a fitness apparel brand sold through Burton.
Asos’ rival Boohoo has signed a deal to buy the Debenhams brand for £ 55 million and will restart the department store as an online-only operation from next year.
Asos is in talks with administrators to buy Topshop, Topman, Miss Selfridge and HIIT
With Asos not having a presence on the main drag, any store is unlikely to save the Arcadia stores, which could be closed for good, leaving the brands only trading online.
Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said that if Asos’ deal also comes off, “large parts of the main street will remain empty”.
“Rooms in prime locations are likely to be snapped up, but large trays from stores in cities across the country are likely to stay on board for some time,” she added.
Asos said in a brief statement to the London Stock Exchange: ‘The Board believes this would be a compelling opportunity to acquire strong brands that are well received by its customer base.
‘However, at this point in time there can be no certainty about a transaction and Asos will keep shareholders informed accordingly. Any acquisition would be funded from cash reserves. ‘
Asos stock rose more than 5 percent to £ 50.33 in morning trading on Monday, while Boohoo also rose more than 4 percent to £ 3.47.