As it cuts costs as part of its turnaround drive, ASOS said it’s mothballing a major Midlands warehouse. And a newspaper has also claimed that it’s talking to Authentic Brands Group about the sale of the Topshop brand.
It emerged at the weekend that a Topshop/Topman sale was being considered, with Authentic just one of a long list of names industry watchers thought likely to be interested.
But The Telegraph said it has been in talks specifically with Authentic, which also now owns other UK assets Ted Baker and Hunter.
ASOS CEO José Antonio Ramos Calamonte didn’t comment on that but it looks like the company may want a premium price for the business for which it paid £265 million+.
Calamonte insisted that Topshop had been a strong performer over the past year and told the newspaper: “We’re very happy with it.”
Meanwhile, the fulfilment centre in Lichfield, Staffordshire, opened just two years ago after a £90 million investment in making it fully automated. Currently, over 700 people work there.
Calamonte’s Driving Change strategy aims to cut company costs by £300 million and he said the closure would save ASOS around £20 million annually. Mothballing it rather than shuttering it completely means it could also sell it on or reopen it should the need arise.
The company said earlier this year it planned to close three warehouses, including one in the US and one in mainland Europe.
The chief executive told The Telegraph that there are “no sacred cows” and the closing of the Lichfield warehouse is “a very clear example of that”.
Copyright © 2023 FashionNetwork.com All rights reserved.