Myer has been exposed to a loss as a result of Topshop Australia’s franchisee, Austradia, going into voluntary administration on Wednesday night.
Not only does Myer face a $600,000 loss through its 20% stake in Topshop, the department store chain has now seen investors wipe more than $30 million off the value of it, following the news that Topshop went into voluntary administration this week.
In 2015, Myer purchased its stake in Topshop / Topman’s Australian arm, and has since then rolled out 17 concessions within its department stores.
In a statement, Myer advised that all of its Topshop / Topman concessions will continue to trade as normal, confirming that “Ferrier Hodgson will work with Myer and the UK-based franchisor Arcadia Group to deliver the best outcomes for customers and other stakeholders.”
The news, just six years after launching in Australia, reflects the downturn in the Australian retail landscape caused by international fast fashion chains entering Australia, including H&M, Uniqlo and Zara, as well Amazon spreading its wings further locally.
It’s unclear whether Topshop Australia can be saved at this stage, however, to do so will require a great deal of work according to analysts.