Recently, according to the British media Sky News, informed sources, the Arcadia Group, the parent company of the high-street fashion brand Topshop, is negotiating with the consultants for the company's voluntary arrangement procedure (CVA), which may start restructuring next month.
Previously, British retailers such as House of Fraser also signed the CVA agreement, which can reduce the financial burden of operating large stores, help reduce store rents and close some stores. This means that the Arcadia Group's brands Topshop, Dorothy Perkins and Miss Selfridge may be closing some stores and some employees will be unemployed.
According to a statement from the Arcadia Group, “As the retail market is extremely challenging and the UK's high street fashion brands are under constant pressure, we have explored a number of ways in which companies can operate in a more efficient manner.”
Although the Arcadia Group said in a statement that the company is exploring multiple ways to reverse the situation, it does not mention CVA. “The way the group chooses will not lead to layoffs or store closures, the group will operate normally, and the supplier will be paid accordingly.”
In November 2018, the British media Property Week reported that the Arcadia Group plans to close one-third of the UK's 500 physical stores, but the specific closures and closing times have not yet been determined.
In the past two years, Topshop's experience has not been uncomfortable.
In August 2018, Topshop announced the early termination of cooperation with the Chinese agent Shangpin. The closing of the Tmall flagship store in November was interpreted as a signal that the brand has withdrawn from the Chinese market.
The performance of the Arcadia Group began to decline in 2017. The Group's performance report released in May 2018 showed that its full-year profit fell 42% in 2017. Topshop and Topmen brands lost a loss of 11 million pounds, and sales fell 6% year-on-year. £933 million.
Topshop is the representative brand of the high street fashion peak, and its decline is considered by the British "Guardian" to mark the end of the golden age of British high street fashion. Topshop is one of the flag-bearers of the fast fashion trend. At the beginning of 2000, it was the model high street brand that brought the latest trend of T-Taiwan to consumers in a fast and cheap way. However, due to the impact of the Internet, the brand's main consumer groups have gradually turned to the online, Topshop's competitors are more and more, and their performance has also been affected.
In addition, Philip Green, the chairman of the group, was also charged with sexual assault and racial allegations in October 2018. Topshop's reputation has fallen sharply, and celebrities such as Beyonce and the brand are closely related to each other. In February 2019, Green faced a police investigation and the British media said it might lose the jazz title.
New Look, the British fast fashion brand that also withdrew from the Chinese market, chose to continue to withdraw from other international markets. According to the fashion media Fashion Network, New Look filed for bankruptcy in Poland. New Look currently has 19 stores in Poland.
New Look's business conditions in the UK's domestic market have deteriorated since 2016. A voluntary bankruptcy agreement was signed in March 2018, and the Chinese market was withdrawn in October 2018. The parent company Brait Group announced in January 2019 that it will complete the debt swap transaction. In order to reduce the huge debt of about 1 billion pounds, it announced the withdrawal from the Belgian market in the same month.