Topshop boss Sir Philip Green walks away from China partnership

SIR PHILIP GREEN’S first attempt at cracking the Chinese market has ended in failure after he was forced to terminate an agreement with a franchise partner.

The retail tycoon has called time on a partnership dating back to 2014 for Topshop and Topman clothes to be sold through fashion website Shangpin. The tieup was billed as a gateway towards a wider assault on the Chinese market that would see Topshop launching up to 80 stores across mainland China.

But after four years – and not a single store being opened – Sir Philip and Shangpin have parted company in a major setback for the billionaire’s global ambitions.

A spokesman for Sir Philip said Arcadia, the owner of Topshop and Topman, had reached a “mutual agreement” with Shangpin for early termination of the agreement.

He said China was a “hugely significant market for development” and it was “exploring opportunities” to continue growing the brands across the country.

Chinese customers will be able to buy Topshop and Topman clothes through Shangpin and Tmall.com until the end of November. They can also use Topshop. com and Topman.com.

Shangpin is a membersonly website run by founder David Zhao. He also acts as an adviser to foreign companies looking to break into the Chinese market.

The first Topshop store in China was due to open in Shanghai next month, but the project has now been scrapped.

The termination of the partnership adds to the difficulties facing Sir Philip’s retail empire, which is grappling with falling profits in a tough UK market.

Profits at Taveta Investments, the company behind Arcadia, plummeted 42pc to £124.1m for the year to August 26, 2017, according to its latest accounts. Sales have also come under pressure, sliding 5.6pc to £1.91bn, as the business grappled with the “highly competitive and challenging” retail environment.

The retailer closed 41 shops when leases came up for renewal during the period, while negotiating a rent cut on 25. It has 2,800 stores and concessions worldwide.

Taveta Investments owns the Arcadia group of fashion brands, including Topman, Topshop, Burton Menswear, Dorothy Perkins, Evans, Miss Selfridge, Outfit and Wallis.

Sir Philip faced intense political scrutiny after selling BHS for £1 before it collapsed, hitting 11,000 jobs, 19,000 pension holders and leaving a £571m black hole in its pension scheme. He later agreed to pay £363m towards the scheme.