ASOS sells 75% stake in Topshop and Topman to Heartland

This is part of ASOS' broader refinancing efforts.

ASOS is selling a 75% stake in Topshop and Topman to Heartland, the investment firm behind fashion brands like Vero Moda and Jack & Jones, as part of its refinancing efforts, GlobalData reported.

Pippa Stephens, senior apparel analyst at GlobalData, said the deal offers a chance for Topshop and Topman to regain popularity. Since ASOS acquired the brands in 2021, they have struggled to stand out amongst ASOS's extensive product range. 

“The relaunch of their own dedicated websites and increased accessibility through wholesale partners, both online and offline, should help to bolster their visibility and regain appeal,” he said.

Topshop and Topman, which were highly popular from the 1990s through the late 2010s, saw their desirability decline under Arcadia’s ownership and further diminish after ASOS took over. Stephens believes Heartland's fashion expertise, demonstrated by the growth of its Bestseller group, positions it well to breathe new life into the brands.

The analyst said Heartland's fashion experience could revive the brands by focusing on better designs and quality.

This sale also underscores ASOS's ongoing difficulties, Stephens noted.

The retailer expects a sales decline of up to 15% by September 2024, as it loses ground to cheaper competitors like Shein and Cider, and millennials move to premium brands. 

Despite these challenges, ASOS hopes its "Back to Fashion" strategy and faster production model will help it stay competitive.