760 jobs at risk as Topshop Australia is placed into Voluntary Administration

London - Topshop/Topman (Austradia Pty Ltd), the separately owned and operated Australian franchise of the high street fashion retailer, has been placed into voluntary administration today following increasing debt. The move sees 760 jobs as well as a number of retail locations at risk.

Financial restructuring firm Ferrier Hodgson has been appointed administrator, and partners James Stewart, Jim Sarantinos, and Ryan Eagle are set to oversee the administration. The company is said to have been placed in voluntary administration amid mounting debt as Topshop considered it "optimal operating structure."

Topshop/Topman Australia placed into Voluntary Administration

Administrator Stewart stated that it will be "business as usual" going forward following the voluntary administration. The administrators will be working closely together with Topshop's parent company Arcadia Group to support and rescale the Australian business "to a sustainable platform going forward," said Stewart in a statement.

The management team at Austradia has also agreed to work closely with the administrators to ensure the outcome is the best possible solution for the business and its workers. At the time of being placed into voluntary administration, Topshop/Topman counted 9 stand-alone stores in Australia, 17 concessions in department store Myer as well as an online business, with a total of 760 employees.

All employees will continue to be paid by the administrators, and normal customer service and policies, including redeeming gift cards and product returns will continue as normal under the administration time, added Stewart. Topshop Australia is said to be latest fashion retailer to collapse into administration in the country, following on from the voluntary administrations of Marcs, David Lawrence, and Herringbone earlier this year.

Topshop and Topman are the leading brands from Arcadia Group, the British fashion company owned by Sir Philip Green. The separately owned and operated Australian Topshop/Topman franchise, Austradia, opened locally back in 2011. Department store Myer acquired a 25 percent stake in the Australia franchise back in 2015 and rolled out a number of Topshop and Topman concessions.

Photo: By Mtaylor848 (Own work) [CC BY-SA 3.0 ( http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons