Topshop sees losses widen to €564m

Topshop sees losses widen to €564m

Philip Green’s Topshop and Topman fashion chains saw losses widen to more than half-a-billion pounds last year after sales tumbled.

The high street brands reported pre-tax losses of £505.1 million (€564.6 million) for the year to September 2018, according to the latest Companies House filings.

This came against losses of £3.9 million (€4.36 million) the previous year and followed a 9% drop in sales to £847 million (€947 million).

Topshop owner Philip Green has seen his retail empire come under mounting pressure (Ian West/PA)
Topshop owner Philip Green has seen his retail empire come under mounting pressure (Ian West/PA)

The figures show bottom line losses grew to £498.5 million (€557.3 million) from £15.6 million (€17.44 million) a year ago.

It marks the latest sign of trading woes for Philip’s Arcadia retail empire, after figures for its holding company Taveta Investments showed a loss of £177.3 million (€198.2 million for the year to September 2018.

There has been mounting speculation over the future of Arcadia, after it was reported that chief executive Ian Grabiner is laying the groundwork for a break-up of the brand portfolio, which also includes Dorothy Perkins, Miss Selfridge and Evans.

Topshop and Topman’s results were hit by £488.8 million (€546.5 million) in charges, including for onerous shop leases on loss-making stores and write downs on the value of assets, according to the figures.

It also revealed a sharp fall in staff numbers, down 12% to 3,853. Once the star performer in Philip’s retail empire, the Topshop and Topman chains are being overhauled as part of a wider turnaround plan to shut shops and slash rents.

A series of Company Voluntary Arrangements (CVAs) were proposed in May as part of a wider three-year recovery plan.

Landlords eventually voted through the plans in June, giving the green light to close 23 stores and slash rents on many more, though Philip and his wife were forced to offer some concessions funded from their own pockets to get approval for the measures.

Other elements of the recovery plan included pushing its US operations into administration and shuttering an additional 25 Evans and Miss Selfridge stores.

Arcadia recently revealed a deal with online retailer Shop Direct to list Topshop and Topman brands for the first time, following other recent similar deals for sister brands with Next, Asos and Very.

- Press Association

More on this topic

London Fashion Week: How you’ll dress for the next decadeLondon Fashion Week: How you’ll dress for the next decade

Why Erdem stole the show at London fashion WeekWhy Erdem stole the show at London fashion Week

These are the biggest beauty looks from a vampy London Fashion WeekThese are the biggest beauty looks from a vampy London Fashion Week

London Fashion Week: This top make-up artist wants you to ditch your cat-eye for a ‘blue fade’London Fashion Week: This top make-up artist wants you to ditch your cat-eye for a ‘blue fade’

More in this Section

Blarney Castle owner lodges appeal against planned 120-bed nursing homeBlarney Castle owner lodges appeal against planned 120-bed nursing home

Exploration company suggests Irish oil and gas sector 'losing momentum'Exploration company suggests Irish oil and gas sector 'losing momentum'

Runaway Brexit train being driven by people with no real understandingRunaway Brexit train being driven by people with no real understanding

Montessori school gets injunction preventing landlord from retaking possession of its premisesMontessori school gets injunction preventing landlord from retaking possession of its premises


Lifestyle

There are literally hundreds of free events on offer this evening for kids and adults on Culture Night. Marjorie Brennan selects the best of them, in Cork and beyondCulture Night: Get out and make the most of it

The American heritage brand has put together a collection inspired by the most stylish Friends character.This is why Rachel Green’s style is the epitome of Ralph Lauren – as a new collection is announced

When starting out as a comedian, Cork man Andrew Ryan decided to go to straight to London, sidestepping the usual starting ground of Irish clubs and pubs.Cork comedian Andrew Ryan is 'a cross between Ardal O’Hanlon and Ed Byrne'

Rachel Marie Walsh knows the best eyeliners to try this season.Beauty is in the eye of the beholder: Essential eyeliners for a killer look

More From The Irish Examiner