Companies

Shein eyes acquisition of Topshop

Apr 29, 2024 United Kingdom

According to The Sunday Times, Topshop’s owner, Asos, has reportedly attracted interest from several prominent retail companies, including the Chinese fast-fashion giant Shein

In 2021, the online retailer Asos acquired Topshop, Topman, and Miss Selfridge from Arcadia Group for 330 million British pounds (385.5 million euros), outbidding competitors like Next and facing reported interest from Shein and Mike Ashley's companies.

But the company has struggled in the past years and is currently looking to reduce its growing losses and cut debts. Just a few weeks ago, it reported an 18% drop in sales year-over-year in the first half of its fiscal year, which contributed to an underlying pre-tax loss of 120 million British pounds (139.6 million euros).

The company highlighted, however, that its turnaround plan was progressing well, highlighting that it had reduced its stock levels ahead of target. “Asos is becoming a faster and more agile business, and we are reiterating our guidance for the full year as we lay the foundations for sustainably profitable growth in FY25 and beyond”, stated the CEO of the online retailer Ramos Calamonte.

Meanwhile, it has also been reported that Authentic Brands Group (ABG) has also shown renewed interest in Topshop.

Image Credits: drapersonline.com

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