Online fashion giant ASOS has confirmed that is in exclusive discussions with Arcadia administrators to buy its assets out of administration.

The company confirmed its stand with a release of a statement in relation to media speculation regarding it being the leading contender to acquire the troubled fashion retailer.

In a statement, the company said: “ASOS plc notes recent media speculation and confirms that it is in exclusive discussions with the Administrators of Arcadia over the acquisition of the Topshop, Topman, Miss Selfridge and HIIT brands.

“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.”

The confirmation follows just days after a consortium involving British high street retailer Next and New York-based hedge fund manager Davidson Kempner Capital Management backed out of bidding to buy Topshop.

Arcadia Group entered administration in November due to the tough conditions brought about by the Covid-19 pandemic.

Deloitte’s Matthew David Smith, Daniel Francis Butters, Gavin Maher and Robert Scott Fishman were appointed as joint administrators.

Arcadia, which also owns Dorothy Perkins and Burton, employed about 13,000 people and had 444 shops at the time of its collapse.