Could Asos be set to offload Topshop?
Asos, the ailing online fashion retailer, is exploring a sale of Topshop, less than three years after it acquired the high street brand from Philip Green’s collapsed Arcadia empire.
Notice of the sale could be announced as soon as Wednesday in conjunction with the digital retailers full year results, which Asos said have been pushed back by one week due to delays from its auditors PwC.
City sources told Sky News this weekend that a sale was not certain to proceed, and it was “unclear” how much Asos might raise from selling the brand.
The British retailer has struggled to maintain the success it cultivated during the pandemic, as customers scale back on online shopping in the wake of the cost of living crisis.
Back in September the firm reported a 15 per cent decline in group sales, and announced a slew of cost cutting initiatives such as reducing its marketing outreach to customers who didn’t generate profitability.
Asos, which Frasers Group holds a 12.6 per cent stake in, bought the high street darling and a number of its sister brands such as Topman and Miss Selfridges for £265m back in 2021 after Arcadia plunged into administration.
The company fought off bids from fashion powerhouses such as Next and Shein and the deal highlighted the new found power of online retailers in a sector once dominated by brands with a large physical store presence.
High street conglomerate Frasers Group, has been named as an obvious suitor for the purchase of Topshop due to its reputation for acquiring struggling retailers such as Missguided.
Other City sources suggested to City PM that Authentic Brands Group or Chinese giant Shein could be natural partners.
City A.M has contacted Asos and Frasers Group for a comment.