Online fashion brand Asos has confirmed is in talks to buy Sir Philip Green’s Arcadia out of administration.
Rumour’s circulated last week that a number of UK retailers were in talks to buy Arcadia, which includes its Topshop, Topman, and Miss Selfridge brands.
But Asos has now revealed it is the front runner after confirming it has entered into “exclusive discussions” to buy a number of its brands.
It said: “Asos plc notes recent media speculation and confirms that it is in exclusive discussions with the Administrators of Arcadia over the acquisition of the Topshop, Topman, Miss Selfridge and HIIT brands.
“The board believes this would represent a compelling opportunity to acquire strong brands that resonate well with its customer base. However, at this stage, there can be no certainty of a transaction and ASOS will keep shareholders updated as appropriate. Any acquisition would be funded from cash reserves.”
Arcadia entered administration shortly before Christmas leading to many of its stores closing around the UK. Last week the group’s administrators revealed a further 31 stores would be closing, leading to the loss of 714 jobs.
It had been thought that high street chains Next and JD Sports were in the running to acquire Arcadia.
Rumours also suggested Mike Ashley’s Frasers Group and online fashion brand Boohoo were interested in buying the Topshop owner.
While it looks like the two firms will miss out on the deal, Boohoo has managed to snap up struggling department store chain Debenhams.
The £55m deal will see Boohoo acquire Debenhams but close all of its 118 stores. The closures are expected to result in most of Debenhams’ 12,000 staff being made redundant.
Frasers Group had previously owned a 30% stake in Debenhams before it entered administration.