The web portal of Topshop and Topman, once considered among the UK’s leading clothing retail brands, is to be relaunched after owner ASOS sold a majority stake in the brands for £135 million.
The deal will see Danish clothing group Heartland, parent company of Bestseller, hold 75% of the joint venture, with ASOS plc holding the remaining 25%.
Topshop.com went offline in 2020 after the business entered administration. ASOS acquired the Topshop, Topman, Miss Selfridge and HIIT brands from Philip Green’s Arcadia Group for £265m in early 2021.
However ASOS has not relaunched the site as its valuation has tumbled by more than 90% since that time, instead selling the clothing brands via its own portals including ASOS.com. It says Topshop.com will relaunch within six months of the Heartland transaction closing.
The deal grants it certain design and distribution rights in return for a royalty fee, which will enable it to continue selling the brands on ASOS portals.
Bestseller CEO Anders Holch Povlsen is ASOS’s largest shareholder.
“The new joint venture has the opportunity to expand Topshop and Topman’s customer reach through selected wholesale partners – both online and offline – to bring customers globally the best that the brands have to offer,” read a notice to the London Stock Exchange.
Lise Kaae, chief executive of Hearthland, said: “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 reorganising its debt profile with a refinancing – including an offering of around £250m convertible bonds, due in 2028 – and repurchase of some of its outstanding £500m convertible bonds, due in 2026.