Topshop’s unit in New Zealand is the latest fashion retailer to be placed in receivership, just months after the Australian arm of the fashion retailer suffered a similar fate.
Other apparel businesses that have failed recently include the UK’s Jaeger, an upmarket chain that went into administration in April, the US teen clothing chain Rue 21 which shuttered 400 stores in April, and Store Twenty One in the UK, which closed all of its 202 outlets in July.
Topshop’s two New Zealand stores will stay open until a final decision is made on their ownership, said Top Retail Limited which runs the chain in New Zealand.
They opened to great social media fanfare and long queues of shoppers two years ago, but were hit by growing competition from digital retailers.
Both the New Zealand and Australian Topshop units operate as franchises, separate to their UK parent.
Chris Wilkinson, managing director of First Retail Group, told the BBC the company had been hamstrung by the franchise model, which pushed up prices, and some of the clothes were left overs from the UK.
“Some of the lines that weren’t selling in the European market were coming to Australia and New Zealand, [because] the market is a season behind,” Mr Wilkinson
He argued that the combination of higher prices and unpopular stock had prevented Topshop from succeeding in the fast fashion market.
“It wasn’t fast enough,” said Mr Wilkinson.