The company operating Topshop's Australian stores has entered voluntary administration, becoming the latest in a list of retailers to stumble amid sluggish consumer spending.
Three partners from restructuring firm Ferrier Hodgson have been appointed voluntary administrators to Austradia, which operates nine stores, 17 Myer concessions and an online business.
Store closures could be on the cards after Ferrier Hodgson's James Stewart said administrators will work with UK-based brand owner Arcadia Group to determine the right size for a sustainable Australian Topshop/Topman business.
Mr Stewart said Austradia management are working closely with administrators and that Topshop/Topman stores will be open as usual during the process.
"Topshop/Topman is one of the world's best known fast fashion retailers," Mr Stewart said.
The fast fashion chain, which opened in Australia in 2011 to great excitement, has 760 employees and annual sales of approximately $90 million.
Employees will continue to be paid by the administrators.
Topshop is just the latest retailer to come under severe pressure as consumers contend with weak wage growth and increased household debt.
In just the past week, Oroton - which operates the struggling GAP chain in Australia - has flagged an 85 per cent drop in full-year earnings, while the administrators of menswear chains Herringbone and Rhodes & Beckett have held a fire sale in a bid to save the clothing brands in Australia.
Myer this month said its third-quarter sales were down 3.3 per cent on the prior corresponding period, and the department store chain could be dealt another blow if its 20 per cent stake in Austradia falls in value.
At 1033 AEST, Myer shares were down 4.5 cents, or 4.9 per cent, at 87 cents.
They have fallen more than 30 per cent in the past eight weeks.
