// Topshop & Topman recorded pre-tax losses of £505.1m for the year to September 2018
// This came against losses of £3.9m the previous year and followed a 9% drop in sales to £847m
// Topshop and Topman’s results were hit by £488.8m in charges
Sir Philip Green’s Topshop and Topman fashion chains has reported pre-tax losses of £505.1 million for the year to September 2018.
This came against losses of £3.9 million the previous year and followed a nine per cent drop in sales to £847 million, according to accounts filed at Companies House yesterday.
Topshop and Topman’s results were hit by £488.8 million in charges, including for onerous shop leases on loss-making stores and write downs on the value of assets.
Meanwhile, the retailers saw staff numbers fall by 12 per cent to 3853.
It marks the latest sign of trading woes for Green’s Arcadia Group, after accounts filed at Companies House last week showed that it recorded an operating loss of £137.5 million, a stark contrast to the £119.3 million operating profit recorded the year prior.
The retail empire also booked a pre-tax loss of £93.4 million for the same full-year period, compared to a pre-tax profit of £164.5 million in 2017.
Arcadia’s holding company Taveta Investments also showed a loss of £177.3 million for the year to September 2018.
Last week, reports emerged that Green was going to break up Arcadia to potentially sell some of its biggest fashion brands – including Topshop and Topman.
The retailers are being overhauled as part of a wider turnaround plan at Arcadia that entails shutting down shops and slashing rents through seven CVAs.
Back in May, there CVAs were proposed as part of a wider three-year recovery plan.
Landlords approved of the plans in June, giving the green light to close at least 23 stores and slash rents on many more.
It’s estimated that around 1000 jobs are at risk as a result of the CVAs.
Other elements of the recovery plan included pushing its US operations into administration.