Asos has agreed to sell its majority stake in the Topshop and Topman (TSTM) brands to holding company Heartland in a deal worth £135m.

The move could see Topshop and Topman shops return to the high street, although Asos will still maintain certain design and distribution rights for the TSTM brands.

Heartland is an investment and holding company representing the interests of the Holch Povlsen family, and their family business, Bestseller.

The company will hold a 75% interest in the joint venture, which prices the total valuation of the TSTM brands at £180m. The remaining 25% in the joint venture will still be held by Asos Holdings.

Asos revealed that its board “unanimously” believes the transaction is in the best interests of its shareholders, as well as for the online fashion retailer’s customers.

CEO at Asos, José Antonio Ramos Calamonte, described the transaction as an “important step in Asos’ continued transformation”.

“Topshop and Topman have made good progress since we acquired the brands in 2021,” Calamonte commented.

“The new joint venture with Heartland is testament to the brands’ potential and the partnership will help bring TSTM to more customers globally.”

Heartland CEO, Lise Kaae, added: “We are pleased to enter into this joint venture with Asos, bringing the best of the TSTM brands to customers globally, while supporting Asos’ strategy to obtain a more efficient capital allocation. We are committed to and look forward to working closely with our partners in a strong alliance.”

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