- Asos intends to re-launch Topshop.com within six months of completion
Iconic fashion brand Topshop could return to the high street after the brand’s owner Asos revealed an agreement that will see its return online.
Asos said on Thursday it plans to sell a majority stake in Topshop and Topman as part of a new joint venture formed with Denmark’s Heartland.
It intends to re-launch Topshop.com within six months of completion of the deal, which will see Heartland own 75 per cent of the combined business.
The online retailer expects to get around £118million in net proceeds from the sale, and will retain the remaining 25 per cent of the joint venture.
Joint venture: Asos plans to sell the majority of its stake in Topshop and Topman to a new joint venture
Asos chief executive José Antonio Ramos Calamonte said the agreement presents ‘both online and offline’ opportunities for the brand.
Asos shares rose 12.95 per cent or 47.60p to 415.20p on Thursday, having fallen around 4 per cent in the last year.
Heartland, the private holding company of Danish fashion store magnate Anders Holch Povlsen, is the top shareholder in Asos through its Bestseller unit. Bestseller owns fashion retail brands Jack & Jones and Vero Moda.
The transaction is subject to antitrust approvals, but expected to complete in the final quarter of this year.
Ramos Calamonte said: ‘The joint venture and the launch of the refinancing will accelerate our strategy to both offer customers the best and most relevant product and to turn ASOS into a company that delivers sustainable, profitable growth.
‘Topshop and Topman have made good progress since we acquired the brands in 2021.
‘The new JV with HEARTLAND is testament to the brands’ 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.’
Asos trims guidance
On Thursday, Asos also revealed it expected its annual sales to be slightly below its previous forecast, but guided adjusted core profit at the top end of market expectations.
It said it had ‘reduced total and underlying returns rate year-on-year.’
Asos said it had also launched a refinancing which involves an offering of around £250million convertible bonds, which are due in 2028, and will repurchase some of its outstanding £500million convertible bonds, due in 2026.
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