As part of its refinancing, Asos has entered a joint venture with Heartland – the investment company representing the Holch Povlsen family, and their fashion business Bestseller – which will purchase the Topshop and Topman brands.
Heartland will hold a 75% interest in the joint venture following a £135mn deal, which valued the Topshop brands at £180mn. Asos will hold the remaining 25% in the joint venture.
“The new JV with Heartland is testament to the brands’ potential and the partnership will help bring Topshop and Topman to more customers globally,” explained José Antonio Ramos Calamonte, chief executive officer, Asos.
“Asos will continue to focus on what we do best – designing the best fashion and providing a destination for style. Through the Joint Venture, new opportunities, both online and offline, can be explored and we are excited to continue to be part of the brands’ future while also realising the best value structure for Asos shareholders today.”
In 2021, Asos bought the Topshop, Topman and Miss Selfridge brands from the Arcadia Group. A company profile in the recently published RetailX UK 360° report looks at how Asos sells through a variety of own brands and third-party brands and is developing a ‘test and react’ strategy that sees products go from design to sale within three weeks.
More than 800 businesses from more than 50 countries sell through Asos websites, including its marketplace, reaching customers in more than 200 markets around the world.
In February, Asos reintroduced its Asos Insider influencer programme, which features 36 “style enthusiasts” to showcase beauty and fashion products across social channels.
This latest refinancing will see Asos offering around £250mn convertible bonds, which are due in 2028, and will repurchase some of its outstanding £500mn convertible bonds, due in 2026. It will also extend its existing facilities with investment firm Bantry Bay Capital to May 2027, with an option for a 12 month extension.
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