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Philip Green, owner of the Arcadia retail empire, has scrapped an expansion deal with Chinese franchise partner, Shangpin, that would have seen 80 stores open in the country.
A spokesperson for Topshop Topman said the groups “have reached a mutual agreement to an early termination”, and have “enjoyed a successful working relationship since September 2014”.
Arcadia had originally planned to open 80 stores in China and was already selling its goods to Chinese customers online. Green announced the expansion plan in December 2016, and at the time told the Financial Times: “[It is] the start of a unique, exciting and exclusive partnership that will cement Topshop and Topman’s mission of becoming truly global businesses.”
The Arcadia group recently recorded a loss of £10.9m in the year up to August 2017, starkly contrasting with last year when it profits were £59.4m. Accounts filed at Companies House showed the group also saw a 6% drop in sales down to £933.6m.
The spokesperson added: “Topshop Topman consider China a hugely significant market for development. Customers can still shop Topshop and Topman products via Shangpin and Tmall.com until 30 November, 2018, and will continue to be serviced via Topshop.com and Topman.com.”
