Topshop’s UK owner has rescued four Australian stores from potential closure after the group’s local franchise owner collapsed into administration.
The administrators of Austradia, the company operating Topshop and Topman in Australia, said on Friday it had managed to sell assets.
An entity controlled by the Arcadia Group, a British multinational fashion retailer that owns Topshop and Topman in the UK, has bought stores in central Sydney, Bondi Junction, Melbourne and Brisbane’s CBD.
Administrator Ferrier Hodgson said in a statement that this was the optimal operational structure and ensures the brand will continue in the local market.
The new owners said their stores would employ more than 290 people.
The other five Australian Topshop and Topman stores, including the flagship unit on Melbourne’s Chapel Street, closed last month with the loss of 370 jobs.
Ferrier Hodgson was appointed voluntary administrator to Austradia in May after the company hit financial strife amid heavy apparel discounting and a decline in consumer spending.
Myer has also closed all its 17 Topshop concession stores and written off its $6.8 million stake in the brand, taking a total $45.6 million hit.
The department store chain purchased a 25 per cent stake in Austradia in 2015, which was diluted to 20 per cent in 2016.
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