THE Issa brothers have emerged as surprise contenders to buy Arcadia’s Topshop and Topman brands.

City sources told the Lancashire Telegraph that the billionaire brothers’ interests in acquiring a part of Philip Green’s empire is said to have stemmed from their ‘proven track record’ in turning around businesses.

Online retailer ASOS is currently thought to be the frontrunner in the takeover race, this morning confirming they were in ‘exclusive talks’ with administrators of Arcadia.

The company said the ongoing discussions are about snapping up Arcadia’s brands including Topshop, Topman, Miss Selfridge and HIIT, sold via Burtons.

Asos said in a short statement to the London Stock Exchange: “The board believes this would represent a compelling opportunity to acquire strong brands that resonate well with its customer base.

“However, at this stage, there can be no certainty of a transaction and Asos will keep shareholders updated as appropriate. Any acquisition would be funded from cash reserves.”

Speaking to the Lancashire Telegraph on Monday afternoon, a City source confirmed that the Blackburn brothers, who have recently bought ASDA in a £6.8billion deal, are still very much interested in the fashion retailer.

They said: “The Issa Brothers and TDR Capital have submitted a bid for Topshop and Topman because of their considerable experience of the retail industry and proven track record of successfully turning around businesses.”

Arcadia, which employed around 13,000 people and has 444 UK stores, collapsed at the start of December due to the impact of the coronavirus pandemic, years of under-investment and a failure to keep up with shifts to online shopping.

Deloitte must publish a list of creditors by Monday as part of insolvency laws, showing just how much debt was owed by Arcadia – including any money due to HM Revenues and Customs (HMRC).

The retail group slid into administration on November 30 – a day before new laws came into force which would have seen the taxman become a preferred creditor and entitled to repayment ahead of unsecured creditors.

Other retailers including Burnley’s Boohoo, Mike Ashley’s Frasers Group, and JD Sports in partnership with US retail giant Authentic Brands, were also said to have been considering acquiring some or all of Arcadia’s stores.

Boohoo also announced on Monday that it would is saving the Debenhams brand in a £55 million deal but will close all stores.

Last month, Arcadia’s administrators agreed the sale of the retailer’s plus-sized brand Evans to Australian firm City Chic Collective for £23 million.