In December 2020, Philip Green's Arcadia Group filed for bankruptcy, which jeopardized the future of its brands and the fate of 13,000 employees.
On February 1, 2021, it became known that the companies belonging to the Arcadia Group were purchased by the online retailer Asos, paying 265 million for brands and another £ 30 million for shares, BBC reports.
Asos CEO Nick Beyton said the acquisitions of the UK brands Topshop, Topman, Miss Selfridge and HIIT are "an extremely exciting moment for Asos and its customers to accelerate their multi-brand platform strategy."
“We have played a central role in their (Arcadia Group's) recent growth on the Internet. As our property, they will thrive, gaining access to our design and marketing expertise, technology and logistics, and working closely with key strategic retail partners in the UK and around the world,”added Beighton.
The management of Arcadia Group confirmed the deal, saying that around 300 people who currently work for brands in the design, purchasing and retail sectors will move to Asos. At the same time, the parties did not specify what would happen to other employees. The deal is expected to close on February 4.
ASOS is a British online clothing and cosmetics retailer. The company was founded in 2000 in London and was primarily aimed at young people. The website sells clothing from over 850 brands, as well as the retailer's own products.
The ASOS name originally stood for the phrase "As Seen On Screen" with the slogan "Buy what you see in the movies and on TV", as the store was selling celebrity clothing (for example, it sold Brad Pitt's red leather jacket from the movie "Fight Club"). The store is currently focusing on the sale of fashionable clothing and accessories.
During the pandemic, Asos achieved strong sales figures and became one of the largest wholesalers in the online market.
The company of businessman Philip Green Arcadia Group did not survive the pandemic, having experienced difficulties amid the scandal around the owner, who was accused of racial discrimination and sexual harassment in 2018. In 2019, Arcadia Group filed for bankruptcy and closed all stores in the United States, as well as entered into a voluntary agreement with creditors, closing more than 80 stores in Europe and revising the lease terms of the remaining premises.
Green's Evans brand was bought by Australian City Chic in December for £ 23m, with Dorothy Perkins, Wallis and Burton expected to be new owners. It was revealed last week that online fashion retailer Boohoo is in "exclusive" negotiations to buy up these brands.
The reputation of Philip Green, a knight holder for his company's contributions to the UK retail industry, took a hit in 2015. He sold the British Home Stores (BHS) department store chain for £ 1, after which the second largest British retailer went bankrupt: the pension fund deficit was £ 571 million. This prompted an investigation in parliament, and in 2017 Green agreed to contribute to the fund BHS £ 363m
According to the Sunday Times Rich List, the retail tycoon was worth an estimated £ 930 million in 2020.>