ASOS to acquire top Arcadia brands

Gulf Today Report 

ASOS acquires key brands from collapsed giant brand Arcadia for £330 million, under a deal that excludes stores, putting 2, 500 jobs at risk.

According to administrator Deloitte, ASOS has purchased brands such as Topshop, Topman, Miss Selfridge and HIIT.

ASOS will be paying £265 million for the brands, plus an additional £65 million for both current and pre-ordered stock.

"ASOS will acquire the brands, intellectual property and inventory. In addition, approximately 300 employees across design, buying and retail partnerships will transfer to ASOS," Deloitte said. 

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According to sources, outlets of the four brands will close down.

"This acquisition represents a compelling strategic opportunity in support of our mission to become the number one destination for fashion-loving 20-somethings worldwide," it said.

This comes after rival brand Boohoo its plan to acquire Arcadia brands such as Dorothy Perkins, Wallis and Burton. Boohoo purchased intellectual property assets of Debenhams last week.

Both Arcadia and Debenhams collapsed in December -- together risking 25,000 jobs -- having struggled to transition from a bricks-and-mortar business long before the coronavirus pandemic forced shoppers online.