Topshop’s iconic flagship store on Oxford Street in London is up for sale.
The retailer — whose parent Arcadia Group collapsed into administration just days after Black Friday — has launched a sale process run by property investment firm Eastdil Secured on behalf of administrators KPMG. Multiple media outlets have suggested that the location carries a price tag of 420 million pounds, or roughly $582.1 million at current exchange.
According to United Kingdom-based newspaper The Sunday Times, which was the first to report details of the sale process, the building occupied by Topshop was valued at about 500 million pounds as recently as two years ago. However, the COVID-19 pandemic has taken a heavy toll on commercial real estate prices as millions of office workers were relegated to their home desks and consumers chose e-commerce over brick-and-mortar shopping.
Joint administrators’ proposals show that Apollo Global Management Inc. will receive the first 311.6 million pounds of the property’s sale. (The private equity firm served as the senior secured creditor of Redcastle (214 Oxford Street) Ltd., a company that is part of the Arcadia umbrella and owned the building. Arcadia Group Pension Trust Ltd., which is the second secured creditor, will then receive 185 million pounds.
Over the past several weeks, a number of retailers — including sportswear giant Nike, e-commerce behemoth Amazon, athletic group JD Sports and billionaire Mike Ashley’s Frasers Group — have expressed initial interest in acquiring Topshop’s flagship on Oxford Street.
The British high street itself is undergoing a broader restructuring, with specialty chain Marks & Spencer and department store John Lewis among the retailers looking to downsize their physical footprints.
Amid prolonged store closures and mass furloughs, Arcadia Group fell into administration in late November. Just over two months later, online fashion retailer Asos won the bidding war for the Topshop, Topman, Miss Selfridge and HIIT brands in a deal worth 330 million pounds, minus the store portfolio. At the time, Asos suggested that it would transform the labels into “digital-first” companies by integrating them onto its namesake platform; elevating their online experiences; and refreshing their design and marketing plays.