Topshop and Topman, once among the UK’s most popular clothing brands, are set to make a comeback with a relaunch of their websites after ASOS sold a majority stake in the brands for £135m.
Danish clothing group Heartland, the parent company of Bestseller, will own a 75% stake in the joint venture, while ASOS will retain the remaining 25%.
Topshop.com ceased operations in 2020 after the Arcadia Group, then owned by Philip Green, went into administration. ASOS acquired Topshop, Topman, Miss Selfridge and HIIT from Arcadia for £265m in early 2021. However, ASOS did not relaunch the standalone Topshop website, opting instead to sell the brands through its own platform, ASOS.com, with the retailer’s value falling by more than 90%.
The new deal will allow Topshop.com to relaunch its business within six months of the deal closing. Under the terms, ASOS will retain certain design and distribution rights in return for a royalty fee, allowing it to continue selling the brands on its own platforms.
Anders Holch Povlsen, chief executive of Bestseller, ASOS’s largest shareholder, expressed confidence in the potential of the venture. A statement to the London Stock Exchange outlined plans to expand Topshop and Topman’s customer reach through selected wholesale partners both online and offline, with the aim of bringing the brands’ offerings to a global audience.
Commenting on the joint venture, Liz Kay, CEO of Heartland, said: “We are delighted to enter into this joint venture with ASOS, bringing the best of the Topshop and Topman brands to customers globally, while supporting ASOS’ strategy to allocate capital more efficiently. We are committed and look forward to working closely with our partners in a strong alliance.”
Meanwhile, ASOS is restructuring its debt profile, launching a refinancing plan that includes placing around £250m in convertible bonds due in 2028. The move also includes buying back some of its £500m of convertible bonds due in 2026.
The relaunch of Topshop.com represents a significant step in the evolving retail landscape, as Heartland and ASOS prepare to revive these well-known brands and re-establish their presence in the competitive fashion market. The partnership aims to leverage Heartland’s expertise in wholesale and ASOS’s established online platform, providing new opportunities for growth and expansion in a market that continues to adapt to changing consumer habits and digitalisation.