Online fashion retailer ASOS to acquire Topshop

Online fashion retailer ASOS announced on Monday (1 February) that it will acquire Topshop, along with Topman, Miss Selfridge and HIIT brands - all part of UK-based retailer Arcadia Group - for £265 million. The deal includes the purchase of intellectual property assets, such as the brands, but not the physical stores. 300 out of 13,000 of Arcadia Group’s employees in design, buying and retail partnerships roles will transfer to ASOS, putting thousands of retail store jobs at risk. 

The future of Topshop’s 70 UK stores is also uncertain. “It’s not our model to operate stores,” said ASOS Chief Executive Nick Beighton to Financial Times. He added that the company was looking at leasing the Oxford Street Topshop flagship store, “because the administrators asked us to,” but that it was “not a key priority right now.” No announcement has been made for changes to Topshop’s current international business - consisting of franchised stores. 

Topshop, once one of the most popular high street brands in the UK and globally, suffered greatly from the coronavirus pandemic effects on retail store sales. However, this comes after a series of mishaps - namely Topshop owner Sir Philips Green’ sexual harassment scandal in 2016, infamously resulting in Beyonce pulling out her Ivy Park clothing line from Topshop. The brand also carries a style that no longer caters to its audience and has been criticised for lagging in its digital business, challenged by online-retailer competitors, such as Asos, Boohoo, or Pretty Little Thing. 

Topshop’s parent company, the Arcadia Group, collapsed into administration in November 2020. Another Arcadia brand, Evans, was sold to Australian retailer City Chic in December 2020 for £23 million, while Boohoo is in talks to buy the remaining Arcadia brands - Burton, Dorothy Perkins and Wallis. The transactions are likely to put significant physical stores and retail jobs at risk. 

TFR has reached out to Mitra Adiperkasa (MAP) for comments on Topshop's situation. Topshop Indonesia is managed by MAP. The company hasn't responded to our request.