Topshop’s fortunes have swung to a loss and annual sales took a battering as the fashion retailer endured the bleak conditions on the UK high street.
According to accounts filed at Companies House, the Arcadia Group-owned chain – which comprises both Topshop and Topman – made a £10.9 million loss for the year to August 26, 2017, as compared to a £59.4 million profit the year before.
Meanwhile, sales were down by six per cent, falling from £990.8 million to £933.6 million.
Topshop’s coffers also had to part ways with £12.6 million in the year thanks to an impairment on a fixed asset and provisions for the retailer’s onerous leases.
The retailer also raised its provision for new loss-making stores from £730,000 to £4.2 million.
The update comes just days after news that Sir Philip Green’s Taveta Investments, the holding company behind Arcadia – had seen annual operating profits plummet 42 per cent from £215.2 million to £124.1 million over the same full-year period.
However, pre-tax profits rose 45 per cent to £53.5 million, thanks to lower exceptional costs.
Meanwhile, Taveta’s full-year total sales fell by 5.6 per cent from £2.01 billion down to £1.91 billion, and the company was slapped with a £29 million charge from fixed asset impairments.
The latest update from Topshop and Taveta’s update from last week also shortly comes after the future of Arcadia was thrown under doubt after rumours that Green was trying to sell the business to Chinese textiles firm Shandong Ruyi.
Green has since vehemently denied the rumour.
Arcadia Group is the parent company of Topshop, Topman, Burton, Dorothy Perkins, Wallis, Miss Selfridge, Evans and Outfit.
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