In an unexpected development, Topshop and Topman could soon make a comeback on the high street following Asos’s decision to sell a 75% stake in the fashion brand to Heartland, a Danish fashion giant Bestseller subsidiary. The £135 million deal marks a major shift in strategy for the online fashion retailer and could revive the iconic British brand.
Asos had acquired Topshop just over three years ago for £330 million after Sir Philip Green’s Arcadia Group collapsed.
The new transaction values Topshop at £180 million, a significant drop from its original purchase price. Despite this decrease, Asos viewed the deal positively, as it has been facing declining sales and rising debts.
The sale to Heartland, owned by Danish billionaire Anders Povlsen—also a significant Asos shareholder—is expected to help the online retailer repay a large portion of its debts. Asos’s net debt, which was £348 million in April, is expected to reduce by about £150 million due to this deal.
José Antonio Ramos Calamonte, Asos’s CEO, expressed optimism about the agreement, announcing plans to relaunch a dedicated Topshop website by next summer.
He also suggested the possibility of reopening physical stores, taking advantage of Bestseller’s extensive experience in managing high street outlets and wholesale partnerships with department stores. The market responded positively, with Asos shares jumping 20% after the news.
However, the company warned that its profits could be impacted by £10-£20 million this year due to royalty fees it will now incur for selling Topshop and Topman products on its website.
This strategic move comes at a critical time for Asos, which has been struggling to adjust to evolving consumer behavior post-pandemic.
The company has been working to strengthen its fashion offerings and manage excess inventory as shoppers return to physical stores. Through this deal, Asos aims to refocus on its core business while giving Topshop the opportunity to thrive under new management with a potential return to the high street.
