Struggling Topshop in receivership
Despite opening its doors to much fanfare, it’s come as no surprise that fashion retailer Topshop has shut within a few years, a retail analyst says.
The company behind global fashion brand Topshop and Topman in New Zealand has been put into receivership.
But the brand’s two stores in Auckland and Wellington will remain open until a decision was made about their future ownership, the company’s directors said.
Top Retail, which holds the licence for the Topshop brand in New Zealand, is owned by companies connected to fashion designer Karen Walker and Christchurch developer Phillip Carter, who each own 25 per cent.
Menswear retailer Barkers holds the remaining 50 per cent.
First Retail managing director Chris Wilkinson said it was well known Top Retail was experiencing difficulties.
‘‘Its biggest challenge is that it was an expensive business model to run. It’s not a vertical retailer – this is a unique situation where Topshop are having to buy it from another company.’’
New Zealand Topshop franchisees bought stock from its United Kingdom parent company. That added layer meant stores could not control the stock they received, Wilkinson said.
In a statement, Top Retail’s directors said they were ‘‘committed to working closely with all local staff through this transition stage’’.
‘‘We have put our hearts and souls into this business, we have the best staff, great store locations, and the directors have left no stone unturned in trying to find a solution,’’ the statement said.
‘‘We will work closely with the receivers to ensure the best possible outcome for the business and employees.’’
Control of the business now rests with McGrathNicol receivers Conor McElhinney and Kare Johnstone, who said it had become ‘‘apparent that the company was unable to continue to trade due to the losses being incurred’’.
The receivership was voluntary and the directors had indicated the main problem had been rising competition. Similar issues had dogged Topshop’s Australian operator, the receivers said.
McGrathNicol urged any parties interested in the New Zealand business or its assets, such as the leases or fitout, to contact it urgently.