Arcadia Group goes into administration confirms expert
The online fashion retailer has bought Topshop, Topman, Miss Selfridge and HIIT after they were plunged into administration last year. It is believed the buyer also paid another £65million for current and pre-ordered stock.
However, thousands of jobs are still at risk as the deal, which will be funded from cash reserves, does not include stores.
Approximately 300 employees across design, buying and retail partnerships will transfer to ASOS.
The transaction excludes the Topshop, Topman and Miss Selfridge store network which, as of today, comprises approximately 70 leasehold sites.
A source close to the matter said the store closures would see around 2,500 jobs at risk.
Thousands of jobs at risk after ASOS buys out Arcadia
Sir Philip Green
ASOS will pay approximately £295m for the brands, goodwill and stock on hand, and will also take on certain liabilities for forward committed stock orders.
Under the terms of the transaction, ASOS will acquire the brands, intellectual property and inventory.
The deal is expected to be completed this Thursday.
Asos chief executive Nick Beighton said: “We are extremely proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands.
READ MORE: Up to 13,000 jobs at risk as Arcadia bosses struggle to find buyers
Arcadia Group went into administration last year
“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.
“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 UK and around the world.”
They also said its acquisition of the four brands will “resonate” with its core customer base of “20-somethings” in the UK.
This comes after the sale of Evans to City Chic on 23 December 2020 for £23m.
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Arcadia group fell into administration
However, the ASOS deal does not include all brands under the Arcadia umbrella.
Boohoo said it was in exclusive talks to buy the Dorothy Perkins, Wallis and Burton brands in a move which will also not include any stores.
The Arcadia brand fell into administration in December after talks with a number of lenders for a £30million loan failed.
At the time, the brand told Express.co.uk “Arcadia boards have been working on a number of contingency options to secure the future of the Group’s brands”.
Arcadia group includes Topman and Topshop
The company already axed 500 head office jobs last year due to the coronavirus pandemic.
Arcadia has more than 500 standalone stores across the country.
Sir Philip bought the high street group in 2002 for £850million and sold a 25 percent stake in Topshop’s holding company to Leonard Green and Partners.
He then bought it back for just $1.
Debenhams also faced crisis during the pandemic
Arcadia was one of many high street retailers which suffered blows due to the coronavirus pandemic.
Back in April, Debenhams called in administrators and was in talks with JD Sports Fashion about a rescue deal.
The parent company of Edinburgh Woollen Mill, Jaeger and Peacocks, also appointed administrators adding to the thousands of jobs already at risk.
Back in August, Pret A Manger said they would be axing nearly 3,000 roles after completing a restricting of its UK business.