Topshop, a popular UK fashion chain, is up for sale with bids of up to £200m being sought by the administrators of its parent company, Arcadia. The goal is to secure a deal before Christmas, and it is expected that initial offers will be submitted within the next week. While online retailer Boohoo is favored as the most likely buyer for the Topshop brand, this could potentially lead to the closure of most, if not all, of its physical stores. The Guardian has suggested that Philip Green, the former owner of Arcadia, supports Boohoo as a buyer. This is significant because Green’s family is a major creditor of Arcadia, having provided a £50m secured loan. However, the administrators have a duty to obtain the best value for Topshop and other Arcadia labels, which may attract additional bidders.

Among the companies reportedly considering offers are Next, M&S, Frasers, and private equity group Alteri. Even Tesco has been mentioned as a potential suitor, given its current hosting of 30 Dorothy Perkins concessions in its stores. While there is high interest in Arcadia’s brands, it is unclear which specific brands are in highest demand. Despite Topshop’s value being halved according to Brand Finance compared to nearly a year ago, it is still considered the most valuable property. Achieving the £200m price tag would be seen as a successful outcome for the administrators.

Useful links:
1. Topshop Official Website
2. Boohoo Official Website