Asos shares jump as retailer confirms exclusive talks to buy Topshop
Shares in Asos jumped more than five per cent this morning after the online retail platform announced it is in exclusive talks to buy Topshop – the jewel in the crown of Sir Philip Green’s collapsed business empire.
Asos said this morning that it is in discussions with Deloitte – Arcadia’s administrator – to buy the Topshop, Topman, Miss Selfridge and Hiit brands.
The acquisition, which has not yet been confirmed, would be funded by cash reserves.
In a statement this morning Asos said: “The board believes this would represent a compelling opportunity to acquire strong brands that resonate well with its customer base”.
The firm’s share price jumped 5.6 per cent to 5,056p.
Asos has reportedly put in an offer of more than £250m to buy Topshop, to Sky News reported.
If Asos’ bid is successful, the future of Topshop’s workforce could be at risk, as the online retailer is reportedly not interested in buying the brand’s stores.
It comes as online rival Boohoo announced it has bought Debenhams’ brand and website, with the department store chains sites set to close.
Last week Next announced it had withdrawn from the bidding process after it was unable to meet Arcadia’s price expectations.
Next – which was bidding as part of a joint venture with US investment firm David Kempner – wished the future owners “well in their endeavours to preserve an important part of the UK retail sector”.
Arcadia went into administration in November, putting more than 13,000 jobs at risk and becoming Britain’s biggest corporate casualty of the Covid-19 pandemic.