Philip Inexperienced’s Topshop and Topman report £505m loss

Philip Inexperienced’s Topshop and Topman chains slumped to a £505m loss final 12 months as gross sales fell and the retail tycoon wrote down the worth of two of his flagship manufacturers.

Gross sales on the trend manufacturers fell 9% to £846.8m within the 12 months to 1 September as they struggled to compete with the likes of Asos, H&M and Primark. Within the UK gross sales fell by 9.8%.

Write-offs referring to loss-making shops and the unwinding of the Ivy Park athleisure joint venture with Beyoncé mixed with the £161.3m write-off of inter-company money owed to plunge Topshop/Topman to a £505m pre-tax loss, far forward of the £3.8m loss the 12 months earlier than.

Topshop is the principle enterprise in Phillip Inexperienced’s Arcadia retail empire, which final week revealed dire figures. The revelation of poor efficiency at Arcadia’s largest model comes after Green’s holding firm admitted there was “materials uncertainty” about its potential to proceed buying and selling with out new funds, after slumping to a £177.3m loss final 12 months – together with Topshop’s poor efficiency..

The historical past of Arcadia Group

When Sir Philip Inexperienced purchased Arcadia, the retail group behind manufacturers resembling Topshop and Wallis, for £850m in 2002 he was already generally known as the king of the UK excessive road.

Inexperienced made his fortune by breaking apart Sears, the group which as soon as owned the Freemans catalogue and Miss Selfridge, earlier than shopping for BHS in 2000. He grew to become a family identify after his household collected a £1.2bn dividend from Arcadia in 2005, the most important company payout in UK historical past.

However in 2006 Topshop supremo Jane Shepherdson, the lady who put the model on the style A-list, left amid rumours she was sad with Inexperienced’s administration fashion. Her exit got here simply as Topshop teamed up with Kate Moss.

The Croydon-born mannequin helped entrance Topshop’s growth into the US in 2009 the place Inexperienced pledged to construct a billion-dollar enterprise. Three years later US non-public fairness agency Leonard Inexperienced purchased a 25% stake in Topshop for a reported £350m.

Topshop and Arcadia’s different manufacturers have been gradual to adapt to on-line procuring, nonetheless, and confronted rising competitors from cheaper rivals, together with Asos, H&M and Primark. AS gross sales fell, the group’s pension deficit rose. The collapse of BHS in 2016, shortly after Inexperienced had offered it to a serial bankrupt for £1, additionally dented his fame.

Arcadia just lately purchased again Leonard Inexperienced’s stake in Topshop for nearly nothing. The group warned it might collapse if landlords didn’t again a rescue plan involving closing 50 shops and lease cuts. The plan was accepted after landlords have been promised a 20% stake in any sale of the enterprise. The Inexperienced household additionally pledged to pump £100m into the group’s ailing pension scheme.

Sarah Butler

Taveta Investments, the proprietor of Arcadia Group, which is the father or mother of excessive road manufacturers together with Miss Selfridge, Wallis and Evans, stated difficulties refinancing a £310m mortgage on Topshop’s Oxford Avenue retailer, as a result of expire in December, might imply it must increase new funds.

Inexperienced’s retail empire staved off collapse in June after profitable backing from collectors for a rescue plan that concerned the closure of about 50 shops, 1,000 redundancies and lease cuts of as much as 50%.

Accounts filed at Corporations Home on Thursday present the dimensions of the issues for Topshop and Topman. Gross sales fell by early 16% within the US, the place Topshop’s shops at the moment are closed after being put into administration. Even earlier than these closures, the accounts reveal that the chains employed about 900 fewer employees.

Source link

اترك تعليقاً

لن يتم نشر عنوان بريدك الإلكتروني. الحقول الإلزامية مشار إليها بـ *