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.
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.
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
Warren Buffet Shares His Best Advice on Becoming an Effective Leader and Successful Businessman
Warren Buffet is one of the most successful people in the world of business and in life in general. That’s why...January 9, 2020
This Travel Expert Has a Secret Formula for Finding the Best Luxury Hotel for Your Next Holiday
These days, one can make a career out of literally anything. For one Philippe Kjellgren, traveling is a full-time job. He’s...January 7, 2020
These Money-Managing Apps Will Help You Save Up This Year
Saving and managing money has always been a struggle, it is that moment that you would realize how difficult it is...January 6, 2020
5 Things Every Self-Employed Worker Should Do to Secure His Future
According to statistics, more and more people are ditching the traditional 9-to-5 jobs to work for themselves. An estimated 4.8 million...January 6, 2020
Majority Of Americans Lack Financial Management Skills, Research Shows
The world over admires Americans for their self-confidence and infrastructural development. However, Americans are not perfect beings without flaws, and one...January 5, 2020
These Are The Newest Must-Have Gadgets You Need
If you are a fan of the latest devices which were introduced in the market you certainly will have a list...January 5, 2020
Experts Say Millennials Will Be The Richest Generation In History
Experts believe that the millennial generation is literally taking over the world, and they also think that they will be the...January 4, 2020
Students Are The Best People To Benefit From Amazon’s Textbook Rentals
The biggest online retail store in the history of the world has got to be Amazon, it is literally taking over...January 4, 2020
All the Details that You Need to Know About Steve Martin’s Beverly Hills Estate that He Listed for $2.149 Million
The award-winning banjo player Steve Martin is selling one of his beloved homes in Beverly Hills, California for $2.149 million. He...January 4, 2020