Asos has confirmed that it has joined the race to acquire brands from collapsed retail empire Arcadia.
The British e-tailer said Monday it has entered exclusive talks with the administrators of Arcadia over the acquisition of the Topshop, Topman, Miss Selfridge and HIIT brands.
Rival British Fashion retailer Next, which was earlier thought to be the frontrunner in the race to acquire Arcadia’s assets, pulled out of the bidding last week.
Asos in Topshop bidding war
A consortium comprising Next and US investment firm Davidson Kempner Capital Management were teaming up on a potential offer but withdrew after not meeting the price expectations of the vendor.
An Asos spokesperson said in a statement: “The board believes this would represent a compelling opportunity to acquire strong brands that resonate well with its customer base. However, at this stage, there can be no certainty of a transaction and Asos will keep shareholders updated as appropriate. Any acquisition would be funded from cash reserves.”
Arcadia called in administrators from Deloitte at the end of November after its sales took a big hit from the pandemic, putting some 13,000 jobs at risk.
The group had around 444 UK stores at the time.
Last week it emerged that administrators of Arcadia would permanently close 31 of the group’s stores by the end of January, resulting in some 714 redundancies. The closing stores include the entire 21-store estate of Arcadia’s Outfit brand, The Times reported.
In January, Arcadia’s administrators sold the Evans brand, e-commerce and wholesale business to rival City Chic Collective Limited for a cash consideration of approximately 23 million pounds.
Photo credit: Asos website