Daily Newsletter

31 October 2023

Daily Newsletter

31 October 2023

ASOS considers divestiture of its Topshop brand

ASOS purchased the Topshop brand from Arcadia Group in 2021 for £265m.

Jangoulun Singsit October 30 2023

UK-based online fashion retailer ASOS is considering a sale of its Topshop brand after announcing a turnaround plan in October 2022, according to reports by Sky News.

ASOS acquired the brand Topshop from collapsed Arcadia Group in 2021, along with its Topman, Miss Selfridge and HIIT brands in a deal valued at £265m ($321).

The potential sale talks are said to be at the early stage of the process.

As of now, there is no certainty that the sale will proceed, nor is it clear whether talks were held with any potential buyers.

The possible sale option of the brand could be one of the several alternatives being explored by ASOS chief executive Jose Antonio Ramos Calamonte, who took over the role last year.

With the 12-month turnaround plan, Ramos Calamonte aims to optimise its operating performance and reduce costs.

An ASOS spokesman was quoted by Sky News as saying: "ASOS as a policy does not comment on rumour or speculation."

The news comes after the UK-based online fashion and cosmetic retailer reported 15% year-on-year (YoY) sales decline in the fourth period of fiscal year 2023.

The retailer has delayed the publication of its full year results until 1 November 2023, saying its auditor PricewaterhouseCoopers (PwC) needs more time to complete its planned testing.

In May this year, ASOS secured £275m of new debt facilities from a specialist lender, Bantry Bay Capital.

In June this year, the British daily newspaper the Times reported that ASOS secured a takeover bid from Turkish online retailer Trendyol.

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Initially, retailers used AI for basic tasks, including inventory management and demand forecasting. However, its usage has now become more prevalent in other aspects such as personalized marketing, customer service, pricing optimization, and supply chain management. With the rise of ecommerce and the increasing importance of data-driven decision-making, AI adoption in retail and apparel has accelerated. The industry now relies on AI to enhance the shopping experience, optimize business operations, and gain an overall competitive edge.

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