Sir Philip Green, owner of Arcadia which includes such stores as Topshop, Topman, Miss Selfridge and Dorothy Perkins has sensationally stated on BBC that he is to close over half of his existing portfolio over the next three years as profits have dropped by nearly 40 per cent against last year.
The shocking news comes after the hottest winter in history which has not only affected trading but is bringing a huge threat financially to the company as we are apparently set to head towards a double dip recession.
Green stated to BBC that. “Nobody can deal with that. Winter goods are tough. Trading conditions remain extremely challenging, with style, quality and value at the top of our agenda and more important than ever. I do believe everybody today is more financially aware than they’ve ever been in their life.”
Continuing Green added, “We have got – from my memory – 450 or 460 stores where leases expire in the next three years, [and] I think on our latest summary we will close more than half of those on lease expiry. So I would say, I would expect us to close 250, 260. Now, there may be other opportunities that turn up that we might want to open. But certainly, in terms of our existing portfolio, currently that’s our thinking.”
Although Green has not stated whether Topshop is at the forefront of closure I will certainly be bagging up all my favourite pieces just in case this closure becomes imminent!