The New Zealand operating arm of international fashion brand Topshop has fallen into receivership, reports The NZ Herald, despite reportedly making an assurance earlier this year the business would remain in operation after the Australian arm’s collapse.
Directors of Top Retail Ltd, which operates the British fashion brand in New Zealand, say the business will continue to trade until a decision can be made about its future.
“We have put our hearts and souls into this business, we have the best staff, great store locations, and the directors have left no stone unturned in trying to find a solution,” the directors told The NZ Herald.
“It is with regret that the directors had no alternative but to request the secured lender to appoint receivers. We will work closely with the receivers to ensure the best possible outcome for the business and employees.”
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McGrathNicol has been appointed as the receiver of the business and said in a statement, “the company was unable to continue to trade due to the losses being incurred and the directors therefore requested the secured lender appoint receivers to the company”.
A spokesperson for the NZ arm told The NZ Herald earlier this year the voluntary administration of the brand’s operations in Australia “doesn’t have any affect on our business operations”.
“Unlike the Australian business that has a couple of dozen large-format stores in a highly competitive market, our strategy and approach to rolling out the brand in the NZ market has been a much slower, considered rollout with only two stores in key locations,” the spokesperson said at the time.
It was revealed in August that four stores from the Australian arm of the Topshop fashion franchise will be saved by an entity controlled by its UK parent company Arcadia Group.