Asos in exclusive talks to buy Topshop out of administration

The online fashion chain said it was in discussions with the administrators of Arcadia over the acquisition of the Topshop, Topman, Miss Selfridge and HITT brands.

"The board believes this would represent a compelling opportunity to acquire strong brands that resonate well with its customer base," the company said, adding that there can be no certainty of a transaction at this stage.

It is understood that the talks are focused on the brands only, however, and do not include the bricks and mortar retail estate, according to various media outlets, including Sky News and the BBC.

The Issa brothers, who recently acquired supermarket chain Asda, were thought to have made bids for Topshop, along with China’s Shein. Asos is now in exclusive talks, however.

Sir Philip Green’s Arcadia, which also owns Burton and Dorothy Perkins, went into administration last November, hit by both changing shopping patterns and the Covid-19 pandemic. At the time of its collapse, it employed around 13,000 people and had 444 shops.

Asos said any acquisition would be funded out of cash reserves.

The update came as rival online fashion retailer Boohoo announced it was snapping up the Debenhams brand and online business in a £55m deal.