Sir Philip Green has agreed to terminate an expansion deal with Topshop and Topman and their Chinese franchise partner Shangpin.
A spokesperson for the retail tycoon has confirmed that Topshop/Topman’s ambitious plans for Chinese expansion have come to a halt.
“British fashion brands, Topshop Topman, and Chinese franchise partner, Shangpin, have reached a mutual agreement to an early termination,” Green’s spokesperson said.
“Topshop Topman and Shangpin have enjoyed a successful working relationship since September 2014.
“Customers can still shop Topshop and Topman products via Shangpin and Tmall.com until 30 November 2018, and will continue to be serviced via Topshop.com and Topman.com” he added.
Green initially entered the deal with local online partner Shangpin with the intention to open physical Topshop stores in Beijing and Shanghai – talk of which was still going on in early 2018.
“Topshop Topman consider China a hugely significant market for development. The company is currently exploring opportunities to further grow the brands in China,” the spokesman added.
The news comes as Topshop bears the brunt of a £10.9 million loss last year, with sales dropping six per cent in the twelve months to August 26 2017.
Further up Green’s Arcadia Group retail empire, Taveta Investments reported a 42 per cent loss in annual operating profits for the full year.