UK Retail Tycoon Considers Topshop Australia

Topshop Australia entered voluntary administration amid mounting debts six years after opening stores in Down Under. Administrator Ferrier Hodgson revealed that the company has teamed up with the Arcadia Group, Topshop/Topman owners in the United Kingdom, to convert the Australian business into a sustainable platform.
Ferrier Hodgson’s James Stewart declared that the company will operate business as usual while it considers its “optimal operating structure." He said, "They reached a point where they felt this (voluntary administration) was the best vehicle to reorganise the Australian business."
Placing the business into voluntary administration means Arcadia, Austradia, the administrators and Myer can easily restructure it faster. Stewart said that  Austradia, which separately owns and operates Topshop/Topman's Australian franchise, was working closely with the Administrators for the best possible outcome for the business.
It was noted that Topshop/Topman is considered as one of the world’s most popular retailers. It operates 17 Myer concessions, nine stand-alone stores and an on-line business in the country. Currently, 760 people are working for Topshop, which has annual sales of about $90 million. Hodgson has assured that workers will continue to receive their salary from the administrators, and gift cards will be honoured while the administration period is ongoing.
Retail tycoon Sir Philip Green has apparently shown interest in rescuing Topshop Australia. "Sir Philip Green has expressed a very strong interest in maintaining the Topshop and Topman brand in the Australian market," Stewart revealed.
He told Thetradeboss Review they are working with Green’s team for the mechanics. Stewart said Green has the power to determine the future operating model of the business, adding that they understand he may end up with a controlling stake and the local franchise model will likely come to an end.
When competition is tough
Topshop is one of the first international fashion brands to arrive in Australia. However, with increased competition from its biggest rivals such as Zara and H&M, the business has struggled.
In 2016, global brands including Zara, H&M and Uniqlo obtained as much as $600 million out of Australian clothing retail. The sector has been dealing with pressure in the past years as a number of companies struggle to cope with lower consumer spending. The news regarding Topshop Australia’s entry into voluntary administration comes after the recent collapse of half-a-dozen famous fashion brands like the children's label Pumpkin Patch, Marcs and David Lawrence, Payless Shoes, suit-maker Herringbone and Rhodes and Beckett.
Share this:

About Jessica Priston

Ut tellus dolor, dapibus eget, elementum vel, cursus eleifend, elit. Aenean auctor wisi et urna. Aliquam erat volutpat. Duis ac turpis. Integer rutrum ante eu lacus. Vestibulum libero nisl, porta vel, scelerisque eget, malesuada at, neque. Vivamus eget nibh. Etiam cursus leo vel metus. Nulla facilisi. Aenean nec eros.

  • Website
  • Google+
  • Rss
  • Pinterest
  • Instagram
  • LinkedIn
  • Vimeo
  • Youtube
  • Flickr
  • Email

Related News

  • Karl Lagerfeld is plans to launch his first flagship store in UK

    Karl Lagerfeld is planning to launch his first flagship store in UK on one of the major shopping streets in West End of London, 145-147 Regent Street. Expected to open its doors on March 14, the brand new store will be the luxury fashion designer&

  • Smiggle to opens a new store in Brighton

    Australian stationary retailer Smiggle has opened a new store at Churchill Square shopping centre in Brighton as it continues its expansion across the UK. The store, which sells colourful stationary for 6-13 year-olds, will mark the firms first op

  • H and M open first standalone UK store

    The H&M-owned Cheap Monday which prides its self as selling “high level design at a low price” is to open its first standalone UK store today on London’s trendy Carnaby Street. The clothes retailer- which currently has conc

  • H&M opens new Texas flagship Store
    H&M opens new Texas flagship Store
    July 01, 2014 5:50 am

    The newest H&M store in the state covers 24,000 square feet and stands in Austin at The Domain – a high-end retail complex. The store will stock menswear, womenswear and childrenswear with separate areas for accessories, maternity wear