Topshop to be re-evaluated
The operator of Topshop’s Australian stores has entered voluntary administration, becoming the latest retailer to stumble amid sluggish consumer spending.
THE company operating Topshop’s Australian stores has entered voluntary administration, becoming the latest in a list of retailers to stumble amid sluggish consumer spending.
Three partners from restructuring firm Ferrier Hodgson have been appointed voluntary administrators to Austradia, which operates nine stores, 17 Myer concessions and an online business.
Store closures could be on the cards after Ferrier Hodgson’s James Stewart said administrators would work with UK-based brand owner Arcadia Group to determine the right size for a sustainable Australian Topshop/Topman business.
He said Austradia management was working closely with administrators and Topshop/ Topman stores would be open as usual during the process.
The fast fashion chain, which opened in Australia in 2011 to great excitement, has 760 employees and annual sales of about $90 million. Employees will continue to be paid by the administrators.
Myer this month said its third-quarter sales were down 3.3 per cent on the prior corresponding period, and the department store chain could be dealt another blow if its 20 per cent stake in Austradia falls in value.