Topshop and Topman, once among the UK’s most iconic clothing brands, are set for a comeback as their website is relaunched following ASOS’s sale of a majority stake in the brands for £135 million.
Danish clothing group Heartland, the parent company of Bestseller, will hold a 75% stake in the joint venture, while ASOS will retain the remaining 25%.
Topshop.com went offline in 2020 after the Arcadia Group, then owned by Philip Green, entered administration. ASOS acquired Topshop, Topman, Miss Selfridge, and HIIT from Arcadia for £265 million in early 2021. However, ASOS did not relaunch the standalone Topshop site, opting instead to sell the brands through its own platform, ASOS.com, as the retailer’s valuation plummeted by more than 90%.
The new deal will enable Topshop.com to relaunch within six months of the transaction’s completion. Under the terms, ASOS will retain certain design and distribution rights in exchange for a royalty fee, allowing it to continue selling the brands on its own platforms.
ASOS’s largest shareholder, Bestseller CEO Anders Holch Povlsen, has expressed confidence in the venture’s potential. A statement to the London Stock Exchange outlined plans to expand Topshop and Topman’s customer reach via selected wholesale partners both online and offline, aiming to deliver the brands’ offerings to a global audience.
Lise Kaae, Chief Executive of Heartland, commented on the joint venture: “We are pleased 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 obtain a more efficient capital allocation. We are committed to 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 an offering of approximately £250 million in convertible bonds due in 2028. This move also involves the repurchase of some of its outstanding £500 million convertible bonds due in 2026.
The relaunch of Topshop.com represents a significant move in the evolving retail landscape, with Heartland and ASOS poised to revitalise these well-known brands and re-establish their presence in the competitive fashion market. The partnership aims to leverage Heartland’s wholesale expertise and ASOS’s established online platform, bringing new opportunities for growth and expansion in a market that continues to adapt to changing consumer habits and digitalisation.
