Overnight, popular U.K. retailer Topshop made a shock announcement.
The high street brand, which first opened locally in 2011, revealed it would be going into voluntary administration in Australia, citing mounting debt as the reason for the unexpected move.
Topshop ensured that all 760 employees would be paid and that gift cards would be honoured while they work towards turning the business into “a sustainable platform going forward.”
“It will be business as usual as the administrators work closely with Arcadia Group (the UK owners of the brand) on supporting and right-sizing the Australian business” said Administrator James Stewart of Ferrier Hodgson.
“Topshop/Topman is one of the world’s best known fast fashion retailers operating nine stand-alone stores, 17 Myer concessions and an on-line business in Australia.”
Despite being one of the first international retailers to set up shop Down Under, Topshop faced huge competition when major rivals Zara and H&M hit our shores.
Local brands have also felt the strain of incoming international stores, with a reported $600 million being taken out of Australian designers to be spent on the likes of Zara, H&M and Uniqlo last year alone.
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