Topshop is shuttering all of its US stores
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24th May 2019
Following its American debut in New York 10 years ago, British high street chain Topshop is reportedly planning to shutter 11 of its stores across the US, eliminating its presence in the states entirely as per Business Insider. In an effort to avoid administration, parent company Arcadia Group has proposed a significant restructuring of the brand—without which 19,000 jobs will be put at risk.
Although reports confirm that Topshop and Topman will persist online and will be sold through wholesale partners like Nordstrom as well, plans are reportedly awaiting approval for rent price cuts and amendments to the Pension Protection Fund that would see its pension cut in half in order to mitigate the repercussions of bankruptcy.
Amidst a fast-changing retail climate and an increased emphasis on sustainability and waste management in the fashion industry, group CEO Ian Grabiner reflected in a statement to the press that “[It was a] tough but necessary decision for the business” to shutter its stores across America, with shops dotted across Chicago, Miami, Los Angeles and New York City set to close imminently.
Business Insider also reports a decrease in sales against competitors Asos and Boohoo, which have seen incredible success both in the United Kingdom and across the world, contributed to the former fashion empire’s rapid decline. As per Companies House, Acardia’s most recent earnings in the 12 months up to August 2017 evidenced a significant drop of 5.6 per cent to £1.9 billion (AU$3.492 billion).
Multiple allegations of sexual harassment, bullying and racial abuse targeted at chairman of Arcadia Group Philip Green (Miss Selfridge, Dorothy Perkins and several other brands are helmed by the group) have also contributed to sales slides, with customers boycotting brands under his management.
Despite gaining favour with celebrities and models alike that have participated in extravagant fashion week shows over the years—Cara Delevingne, Hailey Baldwin, Adwoa Aboah have all stalked the runways for Topshop—news of its closure in the United States follows the shuttering of over 200 stores in the United Kingdom over the past three years as per BBC. In the United Kingdom, 23 additional stores are reported to be closing too, which will see over 500 jobs put at risk.