On Sunday, British fashion retailer, Topshop Topman made an official announcement to close all its U.S stores. The Topshop Topman defunct in the U.S is followed by filing for bankruptcy protection.
Topshop Topman plans to close function of its 11 stores based in the U.S. The move is another indication of struggles faced by retailers.
Unprecedented market conditions: Topshop Topman
After seeking bankruptcy protection, Topshop Topman’s parent company needs to obtain restructuring.
Topshop Topman, the fast-fashion chain, is owned by London-based Arcadia Group.
Ian Grabiner, the CEO of Arcadia Group, confirmed that Topshop Topman was facing “unprecedented” market conditions in the retail sector.
“Tough but necessary move” by Topshop
Arcadia Group reasons cut-throat competition, customer-base shift to the online market, and pricing policy as a cause of the increase in defunct retailers in the U.S
Market survival pressure was also a reason behind Topshop Topman’s move.
A statement issued by Ian Grabiner, CEO of the Arcadia Group:
“Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options to return the Group to a stable financial platform.”
He further added:
“[The move] was a tough but necessary position for the business.”
Topshop Topman defunct move impacts 520 jobs
Topshop Topman currently acquired 11 stores in the U.S. In 2019; the company started with the first location in New York City. With 800 employees working at Topshop Topman stores.
According to Fox Business report, Topshop Topman considers online shopping outlet like TJMaxx and Amazon, as the reason behind the struggling of the retail sector in the U.S.
With listing assets and at $53 million and liability at $179 million, retailer Topshop Topman filed for bankruptcy protection in the U.S court.
Topshop Topman is initially based in London and is spread over 500 locations in 58 countries across the world.
According to a report published by BBC last week, Topshop Topman is also likely to close down its 23 stores based in the U.K. This move will reportedly affect 520 jobs.