Deloitte sells Arcadia brands for £330m

Deloitte, joint administrators to the Arcadia Group, has sold the Topshop, Topman, Miss Selfridge and HIIT brands to online specialist ASOS, in a deal which will generate £330m but leaves thousands of jobs at risk

ASOS will pay approximately £295m for the brands, goodwill and stock on hand, and will also take on certain liabilities for forward committed stock orders.

Under the terms of the transaction, ASOS will acquire the brands, intellectual property and inventory, and approximately 300 employees across design, buying and retail partnerships will transfer to the company.

However, the transaction excludes the Topshop, Topman and Miss Selfridge store network which, as at 1 February, comprises approximately 70 leasehold sites. It also does not include the current workforce of some 2,500 employees.

Within the past few weeks 50 stores have already closed, with the loss of about 2,000 jobs.

There are also 10,000 members of the Arcadia pension scheme who face a possible hit to their retirement benefits. The scheme has an estimated deficit of £350m and is being assessed by the Pension Protection Fund.

Completion of the transaction is expected on 4 February. It follows the sale of Evans to City Chic on 23 December for £23m.

Online fashion group Boohoo has indicated in an announcement to the stock exchange that it is in exclusive discussions with the administrators from Deloitte over the acquisition of the Dorothy Perkins, Wallis and Burton (excluding HIIT) brands, which it said may or may not result in agreement of a transaction.

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