25th Jan 2021 09:04
(Alliance News) - Online retailer ASOS PLC confirmed Monday it is in exclusive discussions with Arcadia's administrators over the acquisition of the Topshop, Topman, Miss Selfridge and HIIT brands.
ASOS shares were 5.5% higher in early trading in London on Monday at 5,049.14 pence each.
"The board believes this would represent a compelling opportunity to acquire strong brands that resonate well with its customer base. However, at this stage, there can be no certainty of a transaction and ASOS will keep shareholders updated as appropriate," the company said.
Over the weekend, Sky News had reported that ASOS was the frontrunner to buy Topshop out of administration but won't buy any high street stores, being an online-only retailer.
The name ASOS means "as seen on screen".
The emergence of AIM-listed ASOS as a leading bidder for TopShop follows the withdrawal of FTSE 100 constituent Next PLC from the bidding for Arcadia late Thursday last week.
JD Sports Fashion PLC, Frasers Group PLC and boohoo Group PLC also have been reported as having an interest in acquiring Arcadia brands. On Saturday, Sky News said US retailer Authentic Brands Group LLC is working together with JD Sports. Sky also listed Shein, a Chinese fashion group, as being interested.
Asda - the UK supermarket chain being purchased from the US's Walmart Inc by the Issa brothers and UK-based private equity firm TDR Capital LLP for GBP6.8 billion - also is among the bidders, Sky said.
Arcadia, which employed around 13,000 people and has 444 UK stores, collapsed at the start of December due to the impact of the coronavirus pandemic, years of under-investment, and a failure to keep up with shifts to online shopping.
Philip Green's retail group slid into administration on November 30 - a day before new laws came into force which would have seen the taxman become a preferred creditor and entitled to repayment ahead of unsecured creditors.
Peer boohoo announced on Monday that it will be saving the Debenhams brand in a GBP55 million deal but all stores still will close.
By Paul McGowan; [email protected]
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