HEARTLAND, representing the interests of the Holch Povlsen family and their business BESTSELLER, will hold the 75% stake in the venture. The deal puts the total valuation for the Topshop and Topman (TSTM) brands at £180m.

The online retailer originally acquired the TSTM brands in 2021 following the collapse of Sir Philip Green’s Arcadia empire, leading to the closure of numerous stores and the relaunch of the brands online.

ASOS will retain a 25% stake and continue to market and sell the brands online through a licensing agreement. It also has the option to sell a further 5% to HEARTLAND.

The sale will aid ASOS in reducing debt, alleviating short-term concerns regarding its financial position.

José Antonio Ramos Calamonte, CEO of ASOS, said: “We’re pleased to be making this announcement today which is an important step in ASOS’ continued transformation.

“The joint venture and the launch of the refinancing will accelerate our strategy to both offer customers the best and most relevant product and to turn ASOS into a company that delivers sustainable, profitable growth.

“Topshop and Topman have made good progress since we acquired the brands in 2021. The new joint venture with HEARTLAND is testament to the brands’ potential and the partnership will help bring Topshop and Topman to more customers globally.”

He added: “Through the joint venture, new opportunities, both online and offline, can be explored and we are excited to continue to be part of the brands’ future while also realising the best value structure for ASOS shareholders today.”

Lise Kaae, CEO of HEARTLAND, said: “At HEARTLAND, we are pleased to enter into this joint venture with ASOS, bringing the best of the Topshop and Topman brands to customers globally, while supporting ASOS’ strategy to obtain a more efficient capital allocation.”