ASOS completes Topshop and Topman sale

ASOS has finalised the sale of Topshop and Topman to a joint venture led by Heartland, which represents ASOS shareholder Anders Holch Povlsen and his fashion business Bestseller.

The new joint venture was established following a competitive sale process for the brands and sees Heartland indirectly hold a 75% stake in the joint venture for a £135 million cash consideration.

The remaining 25% stake is held by ASOS Holdings Limited, granting the online fashion retailer certain design and distribution rights for Topshop and Topman in return for a royalty fee, allowing it to continue marketing and selling the two brands online.

ASOS previously revealed that the deal is expected to have a negative impact on EBITDA in the current financial year but it would be "increasingly EBITDA accretive over time".

It will enable the growth of the brands and promised a relaunch of them within the next six months. It also plans to expand their reach through selected wholesale partners, both online and offline.

When the deal was announced last month, ASOS CEO José Antonio Ramos Calamonte said: "Topshop and Topman have made good progress since we acquired the brands in 2021. The new JV with Heartland is testament to their potential and the partnership will help bring Topshop and Topman to more customers globally.

"ASOS will continue to focus on what we do best - designing the best fashion and providing a destination for style. Through the JV, new opportunities, both online and offline, can be explored and we are excited to continue to be part of the brands' future while also realising the best value structure for ASOS shareholders today."

ASOS purchased Topshop and Topman, the former jewels in the crown of the collapsed Arcadia fashion empire, for £265 million.

That deal involved the purchase of the brand and online business only, resulting in the closure of all of Topshop and Topman's physical retail stores. ASOS rolled the e-commerce sites into its own online platform.