Six years after launching, the Australian arm of British retail giant Topshop has gone into voluntary administration due to rising debt.
It opened its first store – covering 1300 square metres – in melbourne’s Jam Factory in 2011. That was followed by eight stand-alone stores and 17 Myer sites across Australia. The brand has more than 40 locations worldwide with 620 stores across the globe.
Austradia International owns and operates Topshop and Topman’s Australian franchise.
Administrator Ferrier Hodgson has announced it will work closely with Arcadia Group (Topshop/Topman owners in the UK) to rescue the Australian business and create a more sustainable model. Administrators are currently working towards restructuring the business, as well as looking into downsizing.
Myer bought into Austradia in 2015, rolling out Topshop and Topman outlets at many of its sites. From the department store’s results, released this month, Topshop earnings were down $3 million, with a loss of $600,000 for Myer via its 20 per cent stake in the business.
According to Topshop, it will be business as usual, though. The company will continue to trade while it…
