ASOS buys Topshop for USD 364 million; Stores still close and 2,500 to lose jobs

5 months ago  |  419.5K
   
ASOS buys Topshop for USD 364 million; Stores still close and 2,500 to lose jobs
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Topshop, Topman, HIIT and Miss Selfridge were all owned by the Arcadia Group owned by fashion tycoon, Philip Green. Fast-fashion brand, ASOS purchased all the sister companies on Monday for a sky-high price of USD 364 Million, it announced on Monday. Known for its online presence, ASOS didn't purchase the four brands' physical stores, causing a shutdown and causing the former employees to be left jobless.

The deal is expected to close on February 4. In a letter, ASOS said that the sale was a "strategically compelling opportunity to acquire four strong, iconic fashion brands," that resonated with its core customer base, which is primarily non-UK market. In 2020, 60% of the four brands' sales were generated online rather than from outlets and stores. Due to the pandemic, the brands managed to generate barely USD 364 million in 2020 when compared to the USD 1.4 billion revenue they generated back in 2019.

In December 2020, the Arcadia Group which also owns brands like Dorothy Perkins, Evans, Burton and more, fell into administration and put almost 13,000 jobs at risk, making it one of the UK's biggest corporate casualties of the pandemic. ASOS on the other hand which only has an online presence saw a boom in sales during the pandemic. It attained 4-times more profits than high-street stores that were forced to shut during the lockdown as more demand grew for sportswear, skincare and makeup products during this period.

What are your thoughts on this sale? Will it impact your buying choices? Comment below and let us know.

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