In a strategic cost-cutting move, ASOS has decided to temporarily suspend operations at a substantial Midlands warehouse. Concurrently, reports have emerged about ongoing discussions with Authentic Brands Group regarding the potential sale of the Topshop brand.
The possibility of a Topshop/Topman sale has been a topic of interest for some time, and The Telegraph now reveals that ASOS is actively engaged in negotiations with Authentic Brands Group. Notably, Authentic Brands Group already boasts ownership of Ted Baker and Hunter, further solidifying its presence in the UK market.
While official comments from ASOS CEO José Antonio Ramos Calamonte on these discussions are pending, it is evident that the company may be seeking a premium price for the Topshop brand, a brand for which ASOS paid over £265 million.
Calamonte emphasized the robust performance of Topshop over the past year, asserting, «We’re very content with its performance.»
Simultaneously, ASOS has decided to mothball its fulfilment center located in Lichfield, Staffordshire. This facility, which was inaugurated just two years ago following a substantial £90 million investment to make it fully automated, currently employs over 700 individuals. The decision to mothball, rather than permanently close, the facility is part of Calamonte’s «Driving Change» strategy, aimed at reducing company costs by £300 million. This approach allows for the potential of future sale or reopening, should the need arise.
In an earlier announcement this year, ASOS revealed its intentions to close three warehouses, including one in the US and one in mainland Europe. Calamonte underscored the absence of «sacred cows» in the company’s restructuring process, with the temporary closure of the Lichfield warehouse serving as a clear demonstration of the company’s commitment to change.