Topshop is planning a huge retreat from the US, closing all 11 of its stores
- Topshop could close all of its 11 stores in the US as part of a rescue deal put forward by its parent company Acadia Group to stave off administration.
- The proposed plan, which is currently pending approval, would also see 23 stores in the UK close.
- The company has seen sales and profits slide in recent years as it faces increased competition from buzzy online stores such as Asos and Boohoo.
- Visit Business Insider's homepage for more stories.
Time's pretty much up on Philip Green's US fashion empire.
Just 10 years after its glitzy launch in New York, Topshop (and Topman) plans to close all of its 11 stores as part of a new restructuring deal proposed by its parent company, Arcadia Group, to stave off administration.
A spokesperson confirmed to Business Insider that it would continue to offer the Topshop/Topman brand online and through its wholesale partners, such as Nordstrom.
The deal is currently pending approval from landlords for price cuts on rent and the Pension Protection Fund regarding plans to halve payments to its pension fund. Without the deal, Arcadia Group could go into administration, putting 19,000 jobs at risk.
RELATED: Take a look at every retailer that filed for bankruptcy in 2018:
Ian Grabiner, group CEO said the restructure was a "tough but necessary decision for the business," in a statement to the press. He called out the challenging retail environment, changing consumer habits, and increased online competition as being the main reasons for its current woes.
Topshop's celebrity-filled launch in the US in 2009 didn't take off quite as expected and despite ambitious growth plans, it currently has just 11 stores across the country. It has stores in cities including New York, LA, Miami, and Chicago.
The company has seen sales slide in recent years as it faces increased competition from buzzy online stores such as Asos and Boohoo, which are speeding up supply chain times and jumping on new trends more quickly. According to Arcadia's most recent earnings on Companies House, its revenue fell 5.6% to £1.9 billion ($2.4 billion) in the 12 months to 26 August 2017.
More recently, Green, who is chairman of the group, came under scrutiny after he faced allegations of sexual harassment, racial abuse, and bullying. This led to some customers boycotting Arcadia-owned brands.