As, one more sign of traditional struggle of the retailer, all US stores to be closed by Topshop as its parent corporation seeks to reorganize after filing for liquidation safety.
“It was facing “unprecedented” market conditions in the retail zone”, said by the Arcadia Group, London-based owner of fast-fashion chain Topshop Topman.
Similar to other retailers, the company blamed shifting shopping habits and increasing online competition for its woes. Retailers, who give discount such as TJMaxx (TJX), new brands like Everlane, Amazon (AMZN), have put stress on the retail business of fast-fashion sector.
According to the statement given by Arcadia CEO Ian Grabiner, “Against a setting of demanding retail headwinds, the changing habits of customers and rise in online competition. We have to consider all the factors seriously and plan all feasible strategic options for returning the group to a steady economic stage. This has been not an easy decision but still taken for the good sake of the business”.
Arcadia Group filed in US court for Chapter 15 bankruptcy safety, this week. This grants protection for the foreign companies from creditors. In a court filing, it listed assets as $53 million as well as total balance as $179 million.
The stores of Topshop are in New York, Los Angeles, Las Vegas, Atlanta, Houston, Chicago, Miami, and San Diego. It is not announced by the chain from which date the stores will be shut down but further added that the brand will carry out to sell the US online even after the closing of the store.
Around 566 Topshop, Burton, Evans, Outfit, Dorothy Perkins and other stores are operated by Arcadia Group in the Ireland and UK. Moreover, out of these 23 stores will be closed.
US retailers said 5,994 stores will shut in 2019. According to a new report from Coresight Research, those numbers already go over last year’s total of 5,864 closure announcements. Topshop is the newest retailer to shutter stores and Dressbarn’s parent company on Monday said it will close all of its approximately 650 stores. Besides, Sears, a well-known brand in the retail space for more than 100 years, last October filed for bankruptcy.
