A reported joint bid by Shein and Authentic Brands Group (ABG) for Topshop has been rejected by Asos.
- The bid totalled £215.5 million, significantly higher than the accepted offer from Heartland.
- Asos’s decision was influenced by ABG-owned Ted Baker’s recent challenges in the market.
- Shein and ABG had made prior moves in the fashion industry, including a partnership with Forever 21.
- Details of the sale and associated stakes have been released by The Sunday Times.
In a recent development concerning the sale of Topshop, Asos has reportedly declined a joint bid from Shein and Authentic Brands Group (ABG), valuing at £215.5 million. Instead, Asos opted for a lower offer from the Holch Povlsen family’s Heartland, as reported by The Sunday Times.
This decision came despite the joint bid from Shein and ABG being £80.5 million higher than Heartland’s offer. The challenges faced by ABG-owned Ted Baker are understood to have significantly influenced Asos’s final decision.
Asos announced that it sold a 75% stake in Topshop and Topman brands to Heartland for £135 million, all the while retaining a 22.5% share in the brands. This move forms a joint venture with Heartland, which is a holding company representing the interests of the Holch Povlsen family and their business, Bestseller. Bestseller also holds a significant 28% stake in Asos.
The remaining 2.5% ownership of Topshop continues to reside with Nordstrom, a US department store chain that has been associated with the brand since 2012, maintaining its connection with this iconic British label.
An earlier report from October 2023 already pointed towards a sale exploration by Asos for the Topshop and Topman brands, with interests expressed by Shein and ABG. The two companies have been proactive in the fashion industry, notably with Shein signing a deal with ABG to launch a sub-brand under fashion retailer Forever 21. Their collaboration has seen Shein’s ecommerce platform stocking Forever 21 clothing, while Shein’s own products are offered through Forever 21’s physical stores.
Neither Shein nor Asos have provided comments regarding the report by The Sunday Times, and enquiries to ABG for comments remain unanswered.
The strategic decisions surrounding the sale of Topshop highlight the complexities and competitive nature of the fashion industry.
