UK Fashion Firm ASOS Buys Key Arcadia Brands For 330 Mn

British online fashion group ASOS has agreed to buy four key brands including Topshop from collapsed retail group Arcadia for 330 million ($452 million, 372 million euros), administrators said Monday

London (UrduPoint / Pakistan Point News - 1st Feb, 2021 ) :British online fashion group ASOS has agreed to buy four key brands including Topshop from collapsed retail group Arcadia for 330 million ($452 million, 372 million Euros), administrators said Monday.

"The joint administrators to the Arcadia Group Ltd and various subsidiaries announce the sale of Topshop, Topman, Miss Selfridge and HIIT brands to ASOS Plc. The sale will generate total proceeds of �330 million," administrators Deloitte said in a statement.

"Under the terms of the transaction, ASOS will acquire the brands, intellectual property and inventory. In addition, approximately 300 employees across design, buying and retail partnerships will transfer to ASOS." The transaction, excludes the retail store network of of Topshop, Topman and Miss Selfridge, and has sparked concern over potential job cuts.

A source close to the matter told AFP that the store closures would put 2,500 jobs at risk.

The deal is expected to complete on Thursday.

The announcement comes after ASOS-rival Boohoo announced on Friday that it was in talks with Arcadia administrators to buy three of its brands comprising Dorothy Perkins, Wallis and Burton.

Boohoo also agreed last week to purchase the intellectual property assets of failed department store chain Debenhams.

Both Arcadia and Debenhams collapsed in December -- together risking the loss of 25,000 jobs -- having struggled to transition from a bricks-and-mortar business long before the coronavirus pandemic forced shoppers online.