If you're a fan of UK clothing chain Topshop you may want to hit your local store to stock up on their fashions as the retail chain announced they will be closing all of their U.S. Topshop and Topman stores after parent company Arcadia Group filed for bankruptcy in the United States. Liquidation sales could begin as early as this weekend, ten years after it was first introduced to the American public.
According to Business Insider, fans of the product line will still be able to purchase it through retail partners such as Nordstrom who carry the Topshop and Topman lines. In a press statement Ian Grabiner, the CEO of Arcadia Group stated that the store closings and subsequent restructuring of the brand was a "tough but necessary decision for the business."
Retail businesses have been feeling the pressure from an increasingly online marketplace, something which the group attributed to the struggles it faced. "Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options to return the Group to a stable financial platform," Grabiner added.
The store has been facing stiff competition with other "fast fashion" retailers like H&M and Zara competing for business while growing online companies like Asos, Everlane, and Amazon have helped consumers change their shopping habits with more and more people choosing to shop online instead of at brick and mortar stores. CNN reports that the company filed for Chapter 15 bankruptcy protection, "which grants a foreign company protection from creditors." In the filing, the company stated that it had assets totaling $53 million but that its total debt was at $179 million.
Business Insider also pointed out that the Topshop brand recently was negatively impacted when its owner, Sir Philip Green, was accused of sexual harassment and racial intolerance last year. Elle reports that after those allegations surfaced Beyoncé severed ties with the company that once sold her IvyPark athleisure line and now has an exclusive partnership with Adidas.
Fans of both Topshop and Topman can still shop on their official sites online and there has been no official word as to when the stores will close for good.