Retail Magnate Philip Green Is Losing Billions Off Of His Fortune Because Of This Surprising Reason
It seems that the United Kingdom and its businesses wasn’t spared by the ‘retail apocalypse’ that has been plaguing the rest of the business world. Case in point is billionaire Philip Green who’s feeling the effect of the rising popularity of online shopping as his retail empire struggles to survive.
Crumbling Empire
According to reports, the 67-year-old’s once thriving retail empire is now falling due to a mix of the misconduct allegations Green is facing paired with the slowing sales of the companies under his Arcadia Group of companies. Green, and her wife Christina, have supposedly already lost a whopping $3.38 billion over the past three years. Even worse, a billion of that went down the drain this year alone.
Struggling to compete with the suddenly popular low cost online fashion brands, the billionaire’s brands like Topshop was close to collapsing. Fortunately, the landlords of his stand alone stores within the United Kingdom agreed to keep them open. Meanwhile, his wife is also helping with the rent.
What’s Killing Topshop
Topshop, along with its men’s fashion counterpart Topman, was dubbed as the crown of the British billionaire’s retail empire and it’s not hard to see why. For a time, the brand became the go-to shop of numerous British young adults and teenagers. It was even once valued at a whopping $3 billion and launched its expansion into the American market.
But things aren’t as great as before. Some say that Topshop’s valuation has drastically dropped to essentially $0 with some of its investors opting to sell back their shares of the company to Green. Apparently, they weren’t that pleased with a company which doesn’t seem to invest in expanding its presence in the online marketplace despite the popularity of online shopping.
Not only that, its own executives seem to be abandoning a sinking ship as well as David Shepherd, its COO, and Jamie Drummond Smith, an expert in restructuring, leaves. As of latest, all 11 Topshop stores in the United States has been announced to close with their British counterparts following suit.
Billionaire’s Beginnings
With Green’s recent failures, it’s quite interesting to look back at his humble beginnings as a middle class Londoner. After working at a shoe warehouse, the ambitious then-young man began his business of importing and selling jeans. He later on bought and successfully revived a dying retail brand, Jean Jeanie, turning it into a multi-million dollar brand.
He acquired Arcadia Group, under which brands like Topshop, Dorothy Perkins, Burtons and Miss Selfridge belong to, in 2002. About 14 years later, the businessman and his wife were worth a combined almost $6 billion and were rubbing elbows with the likes of Cara Delevingne and Beyonce. Unfortunately, they might not be able to enjoy their billionaire lifestyle sooner or later.
More in business management
-
`
How To Travel the World Using Credits
Traveling can be an exhilarating and enriching experience, but it can also be expensive. However, with the right strategies and planning,...
December 3, 2023 -
`
Amazon’s $4 Billion Investment in Anthropic
In a move highlighting the intensifying battle in the tech industry, Amazon recently announced its substantial investment of up to $4...
November 24, 2023 -
`
Is the Future of Shopping Cashless?
The way we shop has significantly transformed in recent years, thanks to the rise of cashless payments. Traditional methods of exchanging...
November 18, 2023 -
`
Jeff Bezos and Lauren Sánchez’s $500 Million Superyacht
Set your course for a journey into the world of maritime magnificence as we unveil the $500 million superyacht belonging to...
November 11, 2023 -
`
Unlocking True Sustainability in Business and Finance
In the race towards a greener future, businesses and financial institutions have been progressing at a snail’s pace despite their public...
November 5, 2023 -
`
The Business of FaZe Clan
In the ever-evolving landscape of professional gaming and esports, few names have left as indelible a mark as FaZe Clan. Established...
October 26, 2023 -
`
7 Benefits of Shopping Sustainably
In a world that’s becoming increasingly aware of the environmental crisis, sustainable shopping has emerged as a powerful tool for individuals...
October 17, 2023 -
`
How the U.K. Became the Supercar Capital of the World
Picture the narrow streets of Milan with the roar of a Lamborghini passing by or the Autobahn with a Porsche zipping...
October 13, 2023 -
`
Fidelity’s Guide to Retirement: How to Join the Millionaire Club
Picture this: You are lounging on a yacht, the sun’s warm rays are making the turquoise waters shimmer. And the best...
October 6, 2023
You must be logged in to post a comment Login