Asos will sell a 75% stake in its Topshop and Topman brands as part of a joint venture with Heartland, a company controlled by Danish retail tycoon Anders Holch Povlsen, who also owns Bestseller
Bengaluru: Online fast-fashion retailer Asos has reached an agreement to sell a majority 75% stake in its Topshop and Topman brands for cash to a company controlled by Danish retail tycoon Anders Holch Povlsen, the owner of fashion and lifestyle group Bestseller, according to a leading media.
The deal is structured as a joint venture with Heartland, the holding company belonging to Povlsen.
As part of the joint venture, Asos will retain ‘certain design and distribution rights’ for the Topshop and Topman brands in exchange for a royalty fee, allowing it to continue selling the brands online. The deal, valued at $178 million, will aid Asos in repaying its debts as part of its refinancing efforts.
Asos acquired Topshop and Topman in 2021 following the collapse of Sir Philip Green’s retail empire.
After the transaction, expected to close in the fourth quarter of fiscal year (FY) 2024, Heartland will hold a 75% stake in the joint venture, while Asos will retain the remaining 25%. Additionally, Asos will have the option to sell an additional 5% stake in the joint venture to Heartland for about $11.8 million.
Bestseller, a family-owned fashion company founded in 1975, owns and operates over 20 brands, including Jack & Jones, Only, and Vero Moda. These brands are sold in 70 countries across Europe, Asia, North America, South America, Oceania, and the Middle East.
Recently, UK-based Asos entered the emerging Indian market with Reliance-owned e-commerce platform Ajio, offering over 3,000 options across its curated portfolio of own brands including Asos Design, Asos Edition, Asos Luxe and Miss Selfridge. Read more about it here.
