ASOS has announced that it is buying the Topshop, Topman, Miss Selfridge, and HIIT brands, but not the shops. Through the deal, ASOS is paying £265m ($362 m) for the brands and another £30m ($40 m) for the stock.
About 300 people are currently employed by the Arcadia brands in buying, design and retail partnerships will transfer to ASOS, but about 70 stores with 2,500 employees are expected to close. Fifty stores have already shut down within the past few weeks, with the loss of an estimated 2,000 jobs.
“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,” Nick Beighton, chief executive, ASOS, told BBC News. “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 U.K. and around the world. [Acquiring the brands will accelerate ASOS’ mission to become] the number one destination for fashion-loving 20-somethings throughout the world. This deal makes perfect sense for us on every level. There was a lot of competition and we’re pleased we eventually came through and won the brands. We think we’re the natural owners of these brands. We know these customers and we know this market. We have the best designers in London and really, I think these brands sit naturally on the ASOS platform.”
The deal is expected to close on Feb. 4.