Topshop on the block: Meet the runners and riders…
Once the crown jewel of Britain’s high street, Topshop is poised to change hands again…
Asos is set to sell Topshop less than three years after it acquired the brand from Phillip Green’s collapsed Arcadia empire, in the latest scramble from the ailing online fashion retailer to shore up extra funds.
Asos bought the former 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 newfound power of online retailers in a sector once dominated by brands with a large physical store presence.
Frasers Group
Over the last week, a number of high-profile brands have been named as possible suitors for Topshop, the most obvious being Mike Ashley’s Frasers Group due to its reputation for snapping up distressed businesses.
The Sports Direct owner has been topping up its stake in Asos over the past few months, with it now sitting at over 10 per cent.
“Sensing opportunity, Frasers Group has been quietly adding to its stake, which will only add to speculation that change is at hand,” Danni Hewson, head of financial analysis at AJ Bell, said.
Shein
Chinese fast fashion giant Shein has also been mentioned as a favourite to acquire the British brand, as it looks to increase its foothold in the Western fashion market, City PM understands.
The global online retailer bought the brand and intellectual property of Missguided today from Frasers Group and has also entered into a new agreement with Authentic Brands Group to sell Forever 21 clothes on its site.
While Shein is a popular fashion website, the business has faced criticism for its ultra-fast fashion practices and its pop-up shops in London — and is regularly protested against by environmentalists in the wider UK.
Acquiring Topshop, which is a fondly remembered brand, could be seen as an attempt to sanitise its image as rumours swirl that it could try to go public in New York as early as next year.
Authentic Brands Group
New found friend of Shein, Ted Baker, owner of Authentic Brands Group, has also been named as a potential buyer of Topshop following a failed attempt to buy the business in 2020.
Reports in The Telegraph said that Canadian billionaire owner of the group Jamie Salter may be looking at the deal as a chance to put him in direct competition with Frasers Group.
Like Ashley, Salter has a reputation for acquiring on-the-brink businesses such as Forever 21 and Brooks Brothers. The company also has a strong presence in the athletic market buying sportswear brand Reebok last year.
City PM has contacted all mentioned parties for comment.