Yahoo Finance Asos becomes contender in Topshop bidding war as Next pulls out
Online fashion giant Asos (ASC.L) has emerged as a contender for high street chain Topshop just days after Next (NXT.L) pulled out of the auction.
Topshop, which is part of Sir Philip Green’s Arcadia empire that went into administration in November last year, is currently being auctioned off along with the group’s other brands, including Miss Selfridge, Evans, Burton and Dorothy Perkins.
Asos joins a list of bidders for the fashion house, with the likes of Authentic Brands, the US owner of Barneys department store, and online rivals Shein and Boohoo (BOO.L) thought to be in the running.
Before pulling out on Thursday this week, Next was working with US hedge fund Davidson Kempner. Davidson Kempner, which gave a £180m ($246m) emergency loan to Poundland two years ago, also bought Oak Furnitureland out of administration in June.
Next said in a statement that it had been “unable to meet the price expectations of the vendor” amid mounting speculation that the brand could fetch between £250m and £300m.
“Next wishes the administrator and future owners well in their endeavours to preserve an important part of the UK retail sector,” it added.
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The sale process also piqued the interest of Mike Ashley’s Frasers Group (FRAS.L) and Marks and Spencer (MKS.L).
Prior to its collapse, Arcadia declined a £50m lifeline from Frasers Group which was offered in November. It called the move a “publicity stunt”, heightening the rivalry between retail tycoons Green and Ashley.
Arcadia employed as many as 13,000 people across almost 50 UK stores when it collapsed.
COVID-19 has seen many companies buckle under the economic pressure it has caused, especially as many high street brands were already struggling pre-pandemic due to declining footfall, increased online competition and rising business rates.
Green built the company into a retail Goliath through a series of acquisitions in the early 2000s. At its height, the company’s brands were a stalwart of high streets across the country and TopShop — Arcadia’s crown jewel — was fronted by model Kate Moss. Arcadia’s success helped Green amass a fortune of almost £5bn at his height.
However in recent years, Green was embroiled in the scandal surrounding the collapse of BHS, which he sold for £1 in 2015. MPs voted through a non-binding motion calling for his knighthood to be stripped and Green ultimately agreed to pay £363m to address a shortfall in BHS’ pension scheme.
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