Myer’s Whiplash From Topshop Trouble

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.

Never miss our best stories. Sign up to Power Retail’s  free weekly newsletter and find our daily stories on Facebook, Twitter and Instagram.

 

2 thoughts on “Myer’s Whiplash From Topshop Trouble

  1. It wasn’t that long ago there was a lot of buzz around topshop. How things quickly change. Surely this can’t just be the threat of amazon, their business models are pretty different?

    Reply
  2. Indeed David. I suspect this may not be the last big name to fall in the next 12 months. I am sure a few retailers like this are re-evaluating the landscape given how much it may change post Amazon

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

PowerRetail Extra Enewsletter