Topshop is latest store to sink into red

SIR Philip Green’s Topshop has plunged in to the red as it battles the crunch on the High Street.

The tycoon’s fashion chain, which includes Topman, suffered a £10.9m loss for the 12 months to August 26, compared to a £59.4m profit the previous year.

Sales dropped 6pc to £990.8m during the same period. It came as the business was hit by £12.6m in writedowns, with expensive leases costing it a further £4.2m.

The company’s parent, Taveta Investments, reported a 42pc drop in profits last week.

Sources said more of his company’s remaining 800 shops face closure in a bid to steady the ship.

Green’s retail empire, Arcadia Group, was the subject of intense speculation earlier this year amid reports the billionaire was trying to sell it to Chinese buyers. Sir Philip denied the rumours.

Arcadia also owns fashion chains Dorothy Perkins, Burton Menswear, Miss Selfridge, Outfit, Evans and Wallis.

The turmoil at Topshop is not unique. Retailers such as Carpetright to Poundworld are also fighting for survival as shoppers ditch physical stores for internet retailers such as Amazon.