On-line vogue large ASOS mentioned it’s in unique talks to purchase Arcadia’s manufacturers together with Topshop, Topman, Miss Selfridge and HIIT, offered through Burtons.
It comes after Boohoo snapped Debenhams for £55m, buying the long-lasting division retailer’s model and web site.
ASOS doesn’t have a excessive avenue presence, so any deal is unlikely to incorporate saving brick-and-mortar shops, which might shut for good, leaving the manufacturers buying and selling on-line solely.
The corporate has confirmed ongoing discussions with directors for Sir Philip Inexperienced’s retail empire in a brief assertion to the London Inventory Change.
It mentioned: “The board believes this may symbolize a compelling alternative to amass sturdy manufacturers that resonate properly with its buyer base.
“Nevertheless, at this stage, there will be no certainty of a transaction and Asos will hold shareholders up to date as applicable. Any acquisition can be funded from money reserves.”
The announcement comes days after excessive avenue rival Subsequent mentioned it was pulling out of discussions round a potential bid alongside US hedge fund Davidson Kempner because it was “unable to satisfy the value expectations of the seller”.
Arcadia, which employed round 13,000 folks and has 444 UK shops, collapsed initially of December as a result of impression of the coronavirus pandemic, years of under-investment and a failure to maintain up with shifts to on-line purchasing.
Last bids are anticipated to be tabled on Monday however, with Asos revealing it’s the solely enterprise in talks with directors from Deloitte, that is now anticipated to be prolonged.
Deloitte should publish a listing of collectors by Monday as a part of insolvency legal guidelines, displaying simply how a lot debt was owed by Arcadia – together with any cash attributable to HM Revenues and Customs (HMRC).
The retail group slid into administration on November 30 – a day earlier than new legal guidelines got here into pressure which might have seen the taxman develop into a most popular creditor and entitled to compensation forward of unsecured collectors.
Different retailers together with Boohoo, Mike Ashley’s Frasers Group, and JD Sports activities in partnership with US retail large Genuine Manufacturers, have been additionally mentioned to have been contemplating buying some or all of Arcadia’s shops.
Boohoo additionally introduced on Monday that it might be saving the Debenhams model in a £55 million deal however will shut all shops.
Final month, Arcadia’s directors agreed on the sale of the retailer’s plus-sized model Evans to Australian agency Metropolis Stylish Collective for £23 million.