Topshop Australia has entered voluntary administration with 760 jobs at risk across nine stores and 17 concessions, but Sir Philip Green is poised to come to its rescue.
Australia‘s franchise of Arcadia Group‘s fast fashion giant announced today that it would be put into a voluntary administration by its franchisee company Austradia.
According to restructuring firm Ferrier Hodgson which was appointed on Wednesday, the retailer is considering “its optimal operating structure” seeing all parts of the business be put under review.
Topshop Australia made losses of $3 million (AUD) last year, meaning netting a $600,000 (AUD) loss for Australian department store chain Myer, which owns 20 per cent of the company and features Topshop in many of its properties.
Owner of the Topshop brand and Arcadia Group Green is thought be ready to buy out the struggling franchise. The Australian reported that Green has been in direct contact with administrators and is said to be “working very closely” with them.
“The business is going through a restructure and it is being fully supported by Sir Philip and its hoped we will get it to an optimal model,” lead administrator James Stewart told The Australian.
“The business model needed some restructure in the current environment and the voluntary administration is being used to help facilitate that and Sir Philip is very supportive of the business and the expectation is that it will go through a process and come out the other side in a slightly different shape.”
“We are working very closely with him (Green) and his team.”
“Some of the stores are working really well, some of them probably not quite as good as they hoped.‘‘
It is expected that some stores may close amid a rescue deal, however this has not been confirmed.