ARCADIA brands including Topshop, Topman and Miss Selfridge have been bought by ASOS in a deal worth £330million.
From gift cards to stores closing, we explain six things you need to know about the takeover.
Topshop stores remain closed due to lockdown restrictionsCredit: PA:Press Association
1. 70 shops are expected to close
Sadly, the deal doesn’t include the 70 shops in the Topshop, Topman and Miss Selfridge portfolio, so these are now expected to shut permanently.
As with all clothing companies, which have been deemed non-essential during the coronavirus crisis, the physical stores for these brands are currently closed due to lockdown restrictions.
It’s unclear if they will reopen when lockdown is lifted to shift stock before shutting forever.
HIIT doesn’t have any standalone shops.
Miss Selfridge has also been sold off to ASOSCredit: PA:Press Association
2. Thousands of staff are at risk of redundancy
The takeover also doesn’t guarantee the jobs of retail employees, meaning 2,500 members of staff are at risk of redundancy.
ASOS has agreed to take on 300 people within the Arcadia Group business, including buyers and designers.
Check out our guide on redundancy rights if you’ve lost your job.
3. Topshop, Topman and Miss Selfridge websites will close
The Topshop, Topman and Miss Selfridge websites will effectively close from the end of this week, where they’ll then redirect to the ASOS webite.
It means you’ll still be able to buy clothes from all three retailers, plus HIIT, but you’ll need to do this on the ASOS website.
ASOS told The Sun it expects this to happen from either this Thursday, February 4, or Friday, February 5, once the deal is complete.
The online retailer will then be the “permanent home” for Topshop, Topman and Miss Selfridge.
In the meantime, it appears you can buy as normal on each website.
In fact, Topshop, Topman and Miss Selfridge are all offering up to 80% off online now – but this sale was already running before the ASOS deal was confirmed.
Sir Philip Green purchased Arcadia Group for £850million in 2002Credit: PA:Press Association
4. ASOS will stock Topshop favourites including jeans
There’s good news for fans of Topshop jeans, as ASOS said it will carry on selling “hero” products such as jeans.
You should be able to find Topshop, Topman and Miss Selfridge brands on the ASOS website by typing in their name once the deal is complete at the end of the week.
In a statement today, ASOS said of the purchase: “We will retain their established brand and customer positioning, which is differentiated from our core ASOS Design and other ASOS Brands.
“This enhances our ability to increase choice for customers offering different customer styles, hero product and price points across our ASOS Brands.”
5. Gift cards can only be used to pay for 50% of a purchase
It’s unclear what the deal means for customers who’ve purchased a Topshop, Topman or Miss Selfridge gift card.
In an update in December, administrators Deloitte said gift cards can only be used to pay for 50% of a purchase.
So for example, you’d only be able to redeem £25 in gift card value against a £50 order.
Or if you have a gift card worth £10, you would be able to use this amount for a purchase worth £20.
Gift cards: your rights explained
WHEN a company falls into administration, it is ultimately up to the administrators to decide whether to accept gift cards.
The administrators are allowed to stop accepting gift cards at any point.
This means you’ll need to keep an eye on the administration process to see what your rights are.
If the administrators later decide that you can’t use your vouchers, you should register a claim with the administrations for the value of the vouchers.
This also applies if the company can’t be saved through administration and is later liquidated.
However, you may not get this money back if other creditors are owed money too. You may also only get a portion of the money back.
If the voucher or amount put on a gift card was for more than £100, then it may be possible to claim the money back if it was purchased with a credit card.
This is because the card company is jointly liable under Section 75 of the Consumer Credit Act 1974.
If the voucher was a gift, then you’d need to ask the person who bought it for you to claim the money back.
We’ve asked Deloitte if this is still the case when purchasing online now and we’ll update this article when we know more.
ASOS told The Sun that gift cards purchased before the administration process remain the responsibility of Deloitte, so it won’t accept them.
But the online retailer said it is actively in discussions about how it can help affected customers once it takes over the brands this week.
If you’ve got a gift card that is no longer being accepted, you should make a claim with Deloitte – but you may not get your money back.
We explain your gift card rights in the box above.
6. Arcadia could sell Burton, Dorothy Perkins and Wallis
Last week, Boohoo said it was in exclusive talks to buy all three of these clothing retailers in a move which will also not include any stores.
A deal has yet to be confirmed, and it’s not clear how far along the talks are.
In a statement on Friday, Boohoo said: “Boohoo Group plc, a leading online fashion group, notes recent media commentary.
“The group confirms that it is in exclusive discussions with the administrators of Arcadia over the acquisition of the Dorothy Perkins, Wallis and Burton (excluding HIIT) brands.
“These discussions may or may not result in agreement of a transaction. A further announcement will be made when appropriate.”
Administrator Deloitte has already sold off several assets from Arcadia Group, including the sale of Evans to City Chic Collective for £23million.
In an announcement last month, Arcadia Group also confirmed it would shut another 31 stores, including 21 of the group’s Outfit shops.
Topshop’s flagship Oxford Street store is reportedly being sold off too.
In mid-August, more than 43,000 retail jobs had been axed since the start of coronavirus lockdown as high streets struggled to survive.
Which shops can stay open during England’s national lockdown? Full list of essential stores.