Not long after the voluntary administration of David Lawrence and Marcs, and the collapse of Kit and Ace, Topshop Australia yesterday announced it was entering voluntary administration. It’s reported that mounting debt led to the decision.
Local firm Ferrier Hodgson has been appointed as voluntary administrator and has said that for the time being, the stores will continue to operate as normal.
“It will be business as usual as the administrators work closely with Arcadia Group (the UK owners of the Topshop/Topman brand) on supporting and right-sizing the Australian business to a sustainable platform going forward,” a statement reads.
For now, employees will continue to be paid and normal customer policies (like gift cards and product returns) will continue. If you’ve been sitting on a voucher though, it might be wise to spend it sooner rather than later.
In 2015, Myer bought a 20 per cent stake in Topshop Australia. In March, earnings for the retailer were down $3 million, exposing Myer to a $600,000 loss.
As it stands, Topshop and Topman Australia are operating nine standalone stores, 17 Myer concessions and an online store (which launched recently) with 760 employees across the business.