Earlier this week, Topshop tycoon Sir Philip Green announced the British fast fashion brand‘s plans to shut down 23 of their retail stores worldwide in an attempt to cut cost and to hopefully turn the business around. The 23 stores include all 11 Topshop and Topman boutiques in the US, and a number of locations in the UK outside of London. Chief executive of Topshop‘s parent company Arcadia Group, Ian Grabiner called the steps “tough but necessary.”
Many retail analysts believe Topshop is falling out of favour with young consumers in the UK, who now prefer online retail services such as ASOS, Boohoo, and Pretty Little Thing.
In other news, Topshop has suffered a decrease in popularity and revenue due to an alleged sexual harassment case that broke out last October: Arcadia Chairperson Sir Philip Green was accused of sexual misconduct, and became subject of a series of investigations surrounding “allegations of bullying, intimidation, and sexual harassment.” This hit the company’s reputation gravely.
In November, only a month after the scandal, Beyoncé bought out all of her label Ivy Park‘s shares. Previously, Beyoncé and Topshop were equal stakeholders of 50% shares each. It was announced this April that Beyoncé will be relaunching the clothing line with Adidas.
Aside from Topshop, the Arcadia Group is also looking to cut rent at other high-street stores, including Miss Selfridge and Dorothy Perkins. It is estimated in a report that 520 jobs in the UK alone will be put under threat as the former “King of the High Street“ is dethroned.