Losses at Philip Green’s Topshop and Topman chains rise to £505m as sales plunge

Results hit by onerous shop leases on loss-making stores

Topshops have long been a high street staple but earlier this year it was decided 23 would close (Getty Images)

Losses at Sir Philip Green’s Topshop and Topman chains rose to more than half-a-billion pounds last year after sales tumbled.

The fashion chains reported pre-tax losses of £505.1m for the year to September 2018, according to new Companies House filings. The previous year, losses were £3.9m.

The value of sales plunged by 9 per cent to £847m. Net losses grew to £498.5m from £15.6m a year ago.

Sir Philip’s Arcadia retail empire has suffered a run of trading woes including a loss of £177.3m for the year to September 2018 for its holding company Taveta Investments.

Speculation over the future of Arcadia has mounted, after it was reported that chief executive Ian Grabiner is laying the groundwork for a break-up of the brand portfolio, which also includes Dorothy Perkins, Miss Selfridge and Evans.

Topshop and Topman’s results were hit by £488.8m in charges, including for onerous shop leases on loss-making stores and write-downs on the value of assets, according to the figures.

It also revealed a sharp fall in staff numbers, down 12 per cent to 3,853.

Once the star performer in Sir Philip’s retail empire, the Topshop and Topman chains are being overhauled as part of a wider turnaround plan to shut shops and slash rents.

A series of Company Voluntary Arrangements were proposed in May as part of a three-year recovery plan.

Landlords eventually voted through the plans in June, giving the green light to close 23 stores and slash rents on many more, although Sir Philip and his wife were forced to offer some concessions funded from their own pockets to get approval for the measures.

Other elements of the recovery plan included pushing its US operations into administration and shuttering an additional 25 Evans and Miss Selfridge stores.

Arcadia recently revealed a deal with online retailer Shop Direct to list Topshop and Topman brands.

Additional reporting by Press Association