Topshop Australia in voluntary administration

Ausiliatrice Cristiano
Mag 25, 2017

The company says it will be business as usual while administrators decide on the next steps, and has promised its 760 employees they will still be paid.

Topshop on Queens Street today.

Retailers in Australia have been under pressure from emerging digital competitors and weak market conditions.

Fashion chain Topshop Australia has collapsed after just six years, dealing a new blow to a hard-pressed retail sector already reeling from a string of high-profile failures.

'Australia is still an expensive place to do business, ' Mr Ogden-Barnes said.

Administrators were appointed to the Australian franchisee of Topshop Topman by its directors yesterday, casting a cloud over almost 800 jobs and 26 outlets, including the big Carillon City store in Perth's CBD.

This month, Myer posted a 3.3 percent decline in third-quarter sales, citing "challenging trading conditions" without specifying a contribution from Topshop.

The tough climate has already seen the failure of several fashion chains this year, notably Marcs, David Lawrence, Herringbone and Rhodes & Beckett.

American Apparel recently closed its Australian stores, before shutting down shops and factories overseas.

Management was "working closely with the administrators to ensure the best possible outcome", Ferrier Hodgson said.

It will be business as usual as the administrators work closely with Arcadia Group (the United Kingdom owners of the Topshop/Topman brand) on supporting and right-sizing the Australian business to a sustainable platform going forward.

Both retail experts said the market had been flooded with fast-fashion competitors like H&M, Zara and Uniqlo, while Target struggles to keep afloat.

Topshop now employs 760 staff and has annual sales of approximately $90 million.

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