TOPSHOP GOES INTO ADMINISTRATION AMID VOLATILE RETAIL MARKET
Written on the 25 May 2017 by Business News Australia
TOPSHOP has become the latest in a string of retailers blasted by the volatile retail market, as the iconic fashion label today announced it has been placed in voluntary administration.
Austradia Pty Ltd, trading as the Australian arm of the UK-based Topshop and Topman brands, has enlisted the services of administrators Ferrier Hodgson as the company winds down its operations including nine stand-alone stores and website.
In addition to Topshop's significant standalone presence nationwide, department store giant Myer (ASX: MYR) also owns a 20 per cent interest in its umbrella Austradia brand.
In a release to the market, Myer noted that Topshop and Topman operate a total of 17 concessions each in its department stores which, for the moment, will go about business as usual.
"The 17 Topshop and 17 Topman concessions in Myer will continue to trade as normal," the release says.
"Ferrier Hodgson will work with Myer and the UK-based franchisor Arcadia Group to deliver the best outcomes for customers and other stakeholders."
Ferrier Hodgson partners James Stewart, Jim Sarantinos and Ryan Eagle were appointed voluntary administrators by the company's board of directors.
Stewart says his team's focus is to work closely with Topshop's UK parent the Arcadia Group on optimising its business to a sustainable platform moving forward.
He also assures that employees will continue to be paid correctly and normal customer policies including gift cards and product returns will remain intact.
News of Topshop's demise comes just one week after ASX listed fashion brand Oroton emerged from a trading halt which shaved $11 million off its market value.
It also reflects the struggle of an industry which has been flooded in the past few years by major international brands including H&M, Zara and UniQlo.
In Australia, Topshop and Topman generate approximately $90 million in annual sales and support approximately 760 employees.
The franchise first came to Australia in 2011.
Author: Business News Australia