It appears Topshop and Topman are in top form. Sir Philip Green recently told WWD in interview that the plan for Topshop and Topman is “very simple, to double their size in the next three to four years.” We know you must be on the edge of your seat wondering where the possible locations will be. Green went on to say, “America is going to be a platform and we’ve got sufficient evidence from America that we can really grow this brand if we get behind it.” This could possible mean that “at least 50 cites” will boast new Topshop locations.
The possible expansion of Topshop and Topman’s stores and the company’s bottom line came about through the partnering of Green and Leonard Green & Partners (LGP), a U.S based private equity firm with “a history of investing in the retail sector.” Green sold a 25 percent stake of Topshop and Topman to LGP. In the end, the deal basically means Topshop, Topman and the Arcadia Group, which includes several other retail brands, will “have zero bank debt and are in a positive cash position.” And being debt free, according to Green, “gives us the balance sheet and flexibility to look at other opportunities to consolidate or acquire, either on our own or in partnership with LGP, who have substantial capital available in their new fund.”
The new deal does not affect the partnership Topshop has going with Nordstorm, in which Topshop has 14 in store locations. According to Green, “Nordstrom is still very much in our thinking; they’re still in the picture and we’re excited about developing with them.”
StyleBlazers, how do you feel about at least fifty more Topshops on this side of the pond?