A decade after its launch in New York, Topshop is closing all of its U.S. stores after its parent company filed for bankruptcy.
Arcadia Group, London-based fast-fashion retailer and operator of the Topshop and Topman brands, has filed for court protection under Chapter 15, the section of the US bankruptcy code that deals with foreign insolvencies.
“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. This has been a tough but necessary decision for the business,” Arcadia CEO Ian Grabiner said in a statement.
There’s no other information whether Topshop stores in Asian countries like the Philippines will be affected. The brand did not say when its US stores will shut down, but shared that they will still sell to the US online.
Aside from Topshop and Topman, Arcadia Group also operates brands like Burton, Dorothy Perkins, Evans, Outfit, and more.
In October 2018, Topshop was involved in a controversy after its owner, Philip Green, was accused of sexual harassment, racial abuse, and bullying. Beyoncé also cut ties with the business tycoon after the incident saying that her brand Ivy Park will no longer be sold at Topshop.