Topshop and Topman, once one of Britain’s most iconic clothing brands, are set for a comeback as their website relaunches after ASOS sold a majority stake in the brands for £135 million.
Danish clothing group Heartland, Bestseller’s parent company, will hold a 75% stake in the joint venture, while ASOS will retain the remaining 25%.
Topshop.com went offline in 2020 after the Arcadia Group, then owned by Philip Green, went into administration. ASOS acquired Topshop, Topman, Miss Selfridge and HIIT from Arcadia for £265 million in early 2021. However, ASOS has not relaunched the standalone Topshop site, opting instead to sell the brands through its own platform, ASOS.com, like the retailer’s. The valuation fell by more than 90%.
The new deal will allow Topshop.com to restart within six months of completing the transaction. Under the terms, ASOS will retain certain design and distribution rights in exchange for a royalty fee, allowing it to continue selling the brands on its own platforms.
ASOS’ largest shareholder, Bestseller CEO Anders Holch Povlsen, has expressed his confidence in the company’s potential. A statement to the London Stock Exchange outlined plans to expand Topshop and Topman’s customer reach through selected wholesale partners, both online and offline, with the aim of delivering the brands’ offering to a global audience.
Lise Kaae, Chief Executive of Heartland, commented on the joint venture: “We are delighted to enter into this joint venture with ASOS, which will allow us to bring the best of the Topshop and Topman brands to customers worldwide, while further accelerating ASOS’ strategy support more efficient capital allocation. We are committed and look forward to working closely with our partners in a strong alliance.”
Meanwhile, ASOS is restructuring its debt profile and launching a refinancing plan that includes an offering of approximately £250 million of convertible bonds due 2028. This move also includes the buyback of some of the outstanding £500 million convertible bonds due 2026.
The relaunch of Topshop.com represents an important step in the changing retail landscape, with Heartland and ASOS poised to reinvigorate these well-known brands and re-establish their presence in the competitive fashion market. The partnership aims to leverage Heartland’s wholesale expertise and ASOS’ established online platform, creating new opportunities for growth and expansion in a market that continues to adapt to changing consumer habits and digitalisation.