Is It True That Topshop Parent Company Will Start Restructuring, Layoffs And Closes?

The cold wave in the British retail industry is continuing.

Recently, British media SkyNews quoted people familiar with the matter, the British high street fashion brand Topshop parent company Arcadia group is consulting with consultants about the company's voluntary arrangement procedure (CVA), which may be opened as soon as possible next month.

Earlier, British retailers such as House ofFraser also signed the CVA agreement, which can reduce the financial burden of large business stores, help reduce shop rents and turn off some stores.

This means that Arcadia group's brand Topshop, DorothyPerkins and Miss Selfridge may usher in some shops closed, and some of them will also be unemployed.

"In view of the challenges in the retail market and the continuing pressure on fashion brands in the UK, we explored a variety of ways to enable companies to operate in a more efficient way," Arcadia group said in a statement.

Although Arcadia said in its statement that the company was exploring ways of reversing the situation, it did not mention CVA.

"The way the group chooses will not lead to layoffs or shops closing. The group will operate normally and pay the corresponding payments to the suppliers normally."

In November 2018, the British media PropertyWeek reported that Arcadia group plans to close 1/3 of the 500 entities in the UK, but the closed stores and closing time have not yet been determined.

In the past two years, the experience of Topshop is not difficult.

In August 2018, Topshop announced the early termination of cooperation with the Chinese agent Shang pin network, and the closure of Tmall flagship store in November, which is interpreted as a signal for the brand to withdraw from the Chinese market.

Arcadia group's performance began to decline in 2017. The performance report released by the group in May 2018 showed a 42% drop in profits in 2017, and a loss of 11 million pounds in the two brands of Topshop and Topmen. Sales fell 6% to 933 million pounds compared with the same period last year.

Topshop is the representative brand of high street fashion peak. Its decline is considered by the British guardian to mark the end of the British high street fashion golden age.

Topshop is one of the standard bearers of the fast fashion trend. In early 2000, it was the model high street brand that could bring the latest trend of T station to consumers in a fast and fair way.

But by the impact of the Internet, the main consumer groups of the brand have gradually shifted to online. Topshop's competitors are more and more, and their performance is also affected.

In addition, group chairman PhilipGreen was accused of sexual assault and racial accusation in October 2018. Topshop's reputation has declined sharply. Celebrities such as Beyonce and other brands have been drawing a clear line with them.

In February 2019, Green faced a police investigation. British media said it might lose the Jazz title.

New Look, the UK's fast fashion brand that also withdrew from the Chinese market, chose to continue withdrawing from other international markets.

According to fashion media Fashion Network, NewLook filed for bankruptcy in Poland.

At present, New Look has 19 stores in Poland.

NewLook's operation in the British home market has worsened since 2016, signed a voluntary bankruptcy agreement in March 2018, and withdrew from the Chinese market in October 2018. The parent company Brait group announced in January 2019 that it would complete the debt swap paction to reduce its huge debt of about 1 billion pounds, and announced that it would withdraw from Belgium's market in the same month.