LONDON (Reuters) - Topshop, the British fashion brand majority owned by Philip Green’s Arcadia group, said on Thursday it has ended its franchise agreement with Chinese partner Shangpin.
The deal was terminated “by mutual agreement”, said Topshop.
Green entered China through a deal with local online partner Shangpin in 2014. The plan was for the relationship to develop with the opening of physical Topshop stores, initially in Beijing and Shanghai. However, no stores were opened.
“Topshop Topman consider China a hugely significant market for development. The company is currently exploring opportunities to further grow the brands in China,” said a spokesman for Topshop Topman.
He said customers would be able to shop for Topshop and Topman products via Shangpin and Tmall.com until the end of November and would continue to be served by Topshop.com and Topman.com.
In May, Arcadia, which also owns the Wallis, Miss Selfridge, Dorothy Perkins, Evans, Burton and Outfit brands, reported a 42 percent slump in full-year profit, blaming intense UK competition.
Reporting by James Davey; Editing by Adrian Croft