Topshop shutters US stores after parent company files for bankruptcy

Topshop will be shuttering its US stores, after parent company Arcadia Group USA filed for bankruptcy. According to several media reports, the company cited retail headwinds, poor market conditions, and online competition as factors that led to “weak sales”.Arcadia CEO Ian Grabiner said in a statement to CNN that while the decision to shut its US stores was tough, it was “necessary” for the overall business. Meanwhile, company representatives told WSJ that there has been a rise in “in-store to online” shopping, with discounts rolling out from various retailers to appeal more to consumers.A spokesperson from Topshop has confirmed to Marketing that moving forward, TSTM Group (a different legal entity that operates Arcadia’s wholesaling and online businesses State side) intends to continue its wholesale and digital businesses in the US.According to BBC and many other international media outlets, there are plans to close about 23 stores in the UK and Ireland. Marketing has reached out to Arcadia Group and Topshop for impact on APAC and future plans. Approximately 800 employees are said to be working at the affected US physical stores, while further information on last day of operations has yet to be revealed.Arcadia Group also houses brands such as Dorothy Perkins, Miss Selfridge, Topman, Wallis, Burton Menswear and Outfit. The group is reportedly  working towards digital growth and revenue for its other brands.Meanwhile in Asia, Topshop is under Wing Tai Holdings. The company’s latest financials saw a plunge in overall net profit including the property and retail sector of the business. The company however, cited the loss primarily due to the absence of one-off gain on disposal of a subsidiary company and the lower contribution from Wing Tai Properties in Hong Kong. Wing Tai Holdings has brands G2000, BCBGMAXAZRIA, Topshop, Uniqlo, Cath Kidston, Dorothy Perkins and Fox Kids and Baby under its retail segment in the region covering Singapore, Malaysia, China and Hong Kong.