Video report by ITV News Business Editor Joel Hills
The online fashion retailer has bought the Topshop, Topman, Miss Selfridge and HIIT brands from administrators for a deal reported to be valued anywhere between £265 million and £330 million.
Administrators for Sir Philip Green’s retail group said the buyer has also paid another £65 million for current and pre-ordered stock.
Asos told investors on Monday morning that it will take on around 300 employees as part of the deal, but this will not include any of the brands’ stores.
Lucy Otter, who has worked at Topshop for eight years, says it's "just awful" finding out she is now without a job via the news
Arcadia collapsed into insolvency at the start of December after pandemic closures further exacerbated the group’s troubles.
Last week, 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.
Asos said its acquisition of the four brands will “resonate” with its core customer base of “20-somethings” in the UK.
It said it expects the deal to complete later this week, adding that it will also see £20 million worth of one-off restructuring and transaction costs
Asos chief executive Nick Beighton said: “We are extremely proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands.
“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.”
A tweet from the Asos account announcing the move received widespread criticism. Many comments highlighted the fact that with so many Topshop workers set to lose their jobs, it was not necessarily all great news.
Asos boss Mr Beighton told reporters on Monday that the company was “looking at” the possibility of retaining Topshop’s flagship store on Oxford Street, but admitted it was “not a priority”.
“It is something we are considering but we are not a stores business,” he said.
“Our priority is to double down on the brands, which we’ve seen perform incredibly well across our platform.”
Asos said the Topshop, Topman and Miss Selfridge websites will start re-directing customers to Asos from “Wednesday evening or Thursday morning”.