Topshop and Topman’s London-based parent company, Arcadia Group, has filed for bankruptcy in the U.S., the Wall Street Journal reports.
The British retailer was expected to begin liquidating inventory in 11 Topshop and Topman stores in the U.S. this weekend after announcing all locations in the nation will shutter their doors, the Wall Street Journal reported. The company had made this decision, Just 10 years after its glitzy launched in New York,
Topshop opened its first U.S. store in New York City in 2009 and expanded to other cities including Los Angeles, Miami, Las Vegas, Houston and Chicago.
About 800 people are employed at these stores. The closing dates of all the locations were not released.
Arcadia is also planning to shut down 23 more stores in the U.K. and Ireland, the BBC reported.
The company’s chief executive Ian Grabiner said in a statement Wednesday that the closings were a “tough but necessary decision.”
Topshop sales have been suffering due to competition from other fast-fashion, online-savvy retailers like Asos, according to Business Insider. The chain also took a hit when the owner of Topshop, Sir Philip Green, was accused of sexual misconduct in October 2018. Along with accusations of racism and employee harassment, the allegations led to customer boycotts of Topshop, resulting in the decline of Green’s personal fortune as well, reportedly by half.
Arcadia, which also operates several other brands including Outfit and Miss Selfridge, will now focus on driving its digital growth, revenue and making infrastructure improvements.