🛍️ ASOS Completes Topshop Sale
ASOS has sold a 75% stake in Topshop and Topman to a joint venture led by Heartland, owned by Anders Holch Povlsen’s Bestseller. This sale, finalized on October 10, 2024, brings in $176M cash. Heartland now holds the majority stake, with ASOS retaining 25%. The sale follows a competitive bidding process, signaling high interest in the iconic brands.
💼 ASOS Keeps Key Rights
Despite selling the majority stake, ASOS has retained significant rights. ASOS will continue to design, market, and sell Topshop and Topman through its website, in exchange for a royalty fee. These rights allow ASOS to benefit from the brands' popularity while streamlining its operations. CEO José Antonio Ramos Calamonte emphasized, “Topshop and Topman will reach a wider audience.”
📉 Impact on ASOS' Financials
ASOS expects this deal to negatively affect its EBITDA in the short term. However, the company remains optimistic, projecting that this partnership will be EBITDA accretive over time. The focus is now on relaunching Topshop and Topman in the next six months and expanding their reach through new wholesale channels, both locally and internationally.
🔄 Journey of Topshop & Topman
Topshop and Topman were acquired by ASOS in 2021 for $346M after Arcadia's collapse. The acquisition only included the brands and online operations, which were integrated into ASOS' e-commerce platform. Physical stores were not part of the deal, resulting in their closure. This new chapter with Heartland aims to revitalize the brands and boost their global presence.
Will Topshop's online relaunch restore its global appeal?
