Topshop to shutter all US stores
British high street giant Topshop will shutter all 11 of its stores across the United States.
Topshop’s UK-based parent group Arcadia has proposed the closure of Topshop and Topman stores as well as the restructuring of the brand in an effort to avoid going into bankruptcy. Shops across New York, Los Angeles, Chicago, Houston Las Vegas, San Diego, Atlanta, and Miami are set to close imminently which will impact 800 employees.
‘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,’ Arcadia CEO Ian Grabiner said in a statement to CNN. ‘This has been a tough but necessary decision for the business.’
Topshop had opened its first U.S. store in New York City about a decade ago but despite gaining favor with celebrities and models, the fashion empire’s rapid decline was inevitable. Falling profits due to stiff competition from Asos and Boohoo and a number of controversies surrounding founder Sir Philip Green who was accused of sexual harassment, bullying and racial abuse have contributed to its downfall. Acardia’s most recent earnings in the 12 months up to August 2017 saw a significant drop of 5.6 percent to 1.9 billion pounds.
Over the past three years, Arcadia Group has already closed over 200 stores in the UK and plans on closing 23 additional stores which will put over 500 jobs at risk.
Follow Fashion Model Directory on Pinterest, Facebook, Linked In, Twitter and Instagram !
