In a move similar to the Boohoo deal for Debenhams, four brands from Sir Philip Green’s Arcadia Group have been bought by ASOS.
The deal struck by ASOS for the brands Topshop, Topman, Miss Selfridge, and HIIT is worth £295 million, plus an additional £30 million worth of stock.
When announcing this takeover via Twitter, they did not announce that they had purchased the stores as well, leaving the retail staff of the Arcadia brands to find out they had lost their jobs via the social media platform.
— ASOS (@ASOS) February 1, 2021
Since Arcadia went into administration in November, 50 stores have already closed with 2,000 jobs lost. After the announcement, it is expected that a further 70 stores will close and another 2,500 staff members will lose their job. However, approximately 300 employees working in design, buying, and retail partnerships within the four brands will transfer to ASOS.
Commenting on the acquisition, ASOS Chief Executive Nick Beighton said:
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.
With the COVID-19 pandemic and lockdown leading to the closure of non-essential shops, consumers have been forced to shop online. ASOS has been one of the brands that have seen boosted sales in recent months, and they are already one of the biggest wholesalers for their four newly-acquired brands.
This is good news for the brands themselves and ASOS, but the effect on the high street is already evident as Topshop’s Oxford Street flagship store was recently put up for sale. The future of the high street is now up for debate.