Myer scrip dips as Topshop trips up

MYER has been rocked by the slide into administration of Topshop and Topman Australia, with investors wiping more than $30 million off the value of the department store group.

Shares in Myer, which has a 20 per cent stake in the fastfashion chain, fell 4.4 per cent yesterday after the administration was announced, closing at their lowest level since 2015.

The damage may be shortlived, though. There is speculation the chain will be rescued by controversial British businessman Sir Philip Green.

Sir Philip’s Arcadia Group is the parent company of Topshop in Britain.

Ferrier Hodgson was appointed administrator to Topshop Australia’s owner, Austradia, late on Wednesday.

Ferrier Hodgson partner James Stewart said yesterday that following “discussions with Sir Philip Green and his Arcadia Group team we are reviewing a potential structure that would see Arcadia Group take a controlling interest in the Australian business”.

Topshop has nine standalone shops in Australia and 17 outlets, called concessions, within Myer stores.

A spokesman for Myer yesterday said the Topshop concessions had been trading well.

“We’ve been pleased with the performance of Topshop and Topman in Myer stores and the brands have had a positive impact, particularly on the youth category,” he said.

Topshop in Australia is controlled by Rebel Sports founder Hilton Seskin through his company, Austradia.

Sir Philip, known as the “Topshop tycoon”, has dominated retail sector news in Britain in the past two years since he sold troubled discount department store chain British Home Stores for £1. BHS went into liquidation this month.

According to the administrator, all Topshop stores and concessions in Australia will continue trading for now.