Topshop is a British clothing brand. Famous in the 90s and 2000s, it belonged to the Arcadia group. Indeed, clothes and accessories are essential components for creating trendy looks. Depending on the season, the clothing brands put forward their most beautiful creations for the great pleasure of fashionistas as well as ordinary people. However, the lack of a suitable strategy for the Topshop brand almost led to its bankruptcy, which resulted in its takeover by Asos, a clothing e-commerce company.
The global health crisis has put a lot of emphasis on e-commerce, where virtually everything is sold online. Online fashion has benefited greatly from this situation in the United Kingdom, for example. For example, clothing retailers that do not engage in e-commerce have simply seen fewer sales or have gone out of business in the worst case scenario.
Generally, these brands are bought by e-commerce companies (fashion and accessories companies that only sell online), as was the case last February 1st with Asos, which bought the Topshop brand.
This transaction enabled the Asos group to take over the jewels of the Arcadia group, the mythical British brands Topshop, Miss Selfridge, Topman, etc., which are now part of the Arcadia Group.
Unfortunately, the Arcadia group filed for bankruptcy a little earlier, with the balance sheet at the end of the year 2020.
The purchase of Topshop and Arcadia's other brands cost approximately £265 million or €300 million. However, this transaction saved the brands alone. Unfortunately, the employees of the group find themselves unemployed. The 23 000 people employed by the structure, as well as the stores, have not found a buyer and are therefore left unemployed.
This choice is beyond the control of Amos, but is due to the policy adopted by clothing e-commerce companies. Amos' famous rival brand Boohoo also completed the takeover of the Debenhams brand on 25 January for around £55 million without the stores and without taking over the former employees.
At best, the stores can just be sold individually to other retailers who wish to do so, and part of the clothing stock is also taken into account during the purchase transaction. Shop management is clearly not part of the model being promoted by these two companies which are revolutionising the UK electronic fashion industry.
Due to Topshop's iconic position, the acquisition of these brands by an electronic sales structure will have a strong impact on the habits of the British. That's right! In reality, these stores were meeting places where they could see the latest fast-fashion trends and acquire them in a user-friendly way.