Asos emerges as frontrunner to acquire Topshop

The online fashion retailer has confirmed that it is in “exclusive discussions with the administrators of Arcadia over the acquisition of the Topshop, Topman, Miss Selfridge and HIIT brands”.

It is understood that a possible deal by Asos to acquire these brands, as first reported by Sky News, would not include any of Arcadia’s 150 stores across the three businesses.

Asos said that its board believed a deal “would represent a compelling opportunity to acquire strong brands that resonate well with its customer base”, but there was “no certainty” that an agreement to snap up the brands would be reached.

It is understood that Asos has offered around £300m for the three brands’ intellectual assets and is motivated to get a deal over the line in part to see off Chinese fashion etailer Shein, which has also shown interest in Topshop.

Topshop is currently Asos’ largest wholesale partner and would represent the first fashion brand acquisition the online retailer has completed if a deal were to be made.

Alongside Asos, new Asda owners the Issa brothers are reportedly interested in a deal to acquire Topshop in conjunction with private equity firm TDR Capital. The pair would reportedly look to put Topshop in the grocery chain if a deal were made, according to The Times.

Other interested parties include US firm Authentic Brands, which has engaged in discussions with JD Sports to run Topshop’s operations if a deal were completed, and DKNY owner G-III Apparel.

Next withdrew from the race to snap up Topshop last week, having previously been pinned as the frontrunner to acquire the business, after failing to match administrator Deloitte’s price expectations.

The sale process for Arcadia’s brands may come to a head this week, with Deloitte due to file its report on the administration to creditors tomorrow.

So far, plus-size fashion chain Evans is the only brand in Arcadia’s stable to be sold, having been acquired by Australian firm City Chic last month for £23m.