By Luke Tugby2019-09-13T04:00:00
Topshop and Topman have slumped to a loss of more than half a billion pounds after suffering a fall in sales and booking a raft of one-off charges.
The fashion chains, owned by Sir Philip Green, reported an eye-watering pre-tax loss of £505m in the year to September 1, 2018, compared to £3.8m the previous year. Sales across the two retailers tumbled 9% to £846.8m.
Documents filed at Companies House revealed that almost half of the loss was a result of a goodwill impairment of £245m – a non-cash writedown reflecting a fall in the value of intangible assets such as the power of the Topshop and Topman brands.
The businesses also booked £161m in charges relating to the writing off company debt and rowing back from Ivy Park, the brand it launched in a joint venture with singer and actress Beyonce.
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