Online clothing retailer Asos declined a much higher bid for Topshop and Topman from fast fashion giant Shein and Authentic Brands Group (ABG) in favour of its new joint venture with Heartland, according to reports.
Last week, Asos announced that it agreed to sell a 75 per cent stake in Topshop and Topman to Heartland, an investment vehicle owned by the family of retail billionaire Anders Povlsen, for £135m in a deal that valued the two brands at £180m.
It was later revealed that Asos had declined a much higher bid of £215.5m made jointly by Shein and ABG, according to a report in the Sunday Times.
Asos, Shein and ABG have been contacted by City A.M. for comment.
Asos deemed the deal with Heartland to be in the “best interest of shareholders” as it will grant the online retailer “certain design and distribution rights” for the Topshop and Topman brands in return for a royalty fee, enabling it to continue marketing and selling the brands online.
It will relaunch Topshop.com as part of the venture, but said there are no current plans to open physical stores despite speculation of a potential return to the high street.
Asos also announced an amendment and extension of its existing facilities agreement with Bantry Bay Capital to May 2027 with an option for a 12 month extension, as well as a £250m refinancing.
Commenting on the initial Heartland agreement, José Antonio Ramos Calamonte, Asos chief executive, 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.”