London-based Aracadia Group has announced it’s closing all 22 U.S. TopShop and TopMan locations after filing Chapter 15 bankruptcy (granted to companies based outside the United States) on Wednesday (May 22, 2019), according to the WSJ. Store will begin to liquidate as soon as this weekend. The company will continue to sell TopShop and TopMan online and at nordstrom.com.
TopShop launched in the United States in 2011. While initially the company had ambitious growth plans, the store struggled to make a connection with the U.S. shopper, who showed a preference for lower-priced, fast-fashion and off-price chains.
In its filing, the chain cited a difficult retail environment. TopShop has also faced online competition from new online retailers like prettylittlthing.com, as well as asos.com and Urban Outfitters, both of which balance a mix of private label offerings and branded apparel, which has shown strength as a trend as of late. TopShop carried Ivy Park until parting ways with Beyoncé last year, however, even before the split the brand saw choppy demand.
Separate from the U.S. closures, Arcadia Group is negotiating a restructuring plan in an effort to reduce the cost of leases as well as pension payments. Part of the plan includes shuttering 23 U.K. stores. If the plan falls through, the chain could go into administration, a U.K. process akin to bankruptcy.