Clothing giant Asos is in talks to buy two major beauty retailers just months after rescuing several fashion brands from collapse.
The company is understood to be exploring potential bids for Feelunique and Cult Beauty as it dips into cosmetics and skincare following a surge in demand during the pandemic.
Asos is reportedly one of the frontrunners for acquisitions of the two brands, both of which have been put up for sale by their current owners, according to Sky News.
Sources told the broadcaster a formal bid is yet to be made, but Asos is hoping to snap up one of the two websites.
It February, the fashion behemoth acquired Sir Philip Green’s Topshop empire for £330million after Arcadia went into administration.
The acquisition would add to its growing portfolio of brands aimed at twenty-something, having admitted that face and body product sales had grown by a record 114% in its most recent results.
Both Cult Beauty and Feelunique are working with advisers on sale processes, according to reports.
The two companies could command valuations in the low hundreds of millions of pounds, according to banking sources.
Industry insiders say that other strategic players in the online beauty sector, including THG Holdings, parent of The Hut Group, and German-based rival Zalando are also expected to bid for Cult Beauty and Feelunique.
Bids are understood to be due for both businesses in the coming weeks.
The Mirror has contacted Asos for a statement.
