The administrators for the failed Topshop franchise in Australia are closing five of its nine stand-alone stores in a bid to save the local arm of the UK fast-fashion retailer.
Stores at Chatswood and Miranda shopping centres in NSW, Highpoint in Melbourne, and Perth have closed in the past two weeks.
![The Topshop store on Chapel Street, South Yarra, which is due to close.](http://web.archive.org./web/20170709102827im_/https://www.fairfaxstatic.com.au/content/dam/images/g/x/7/c/0/9/image.related.articleLeadwide.620x349.gx7box.png/1499491761018.jpg)
But the closure expected to send the biggest shockwaves through the broader retail industry is in Chapel Street, in Melbourne's South Yarra, which has been struggling for several years against competition from surrounding shopping strips, the CBD and online.
Chapel Street was the first Topshop store to open in Australia, in 2011.
On Saturday, the Chapel Street store had "closing soon" and "final reductions" signs on the windows. It is expected to close within weeks.
The Australian franchise of Topshop entered into voluntary administration in May, and talks to try to save the business continue between its Australian owners and the UK owners of the business, including Sir Philip Green.
Myer has a 20 per cent stake in the Australian operation and has Topshop concessions in 17 stores. Fairfax Media has contacted Myer for comment on the future of its stake in the business.
Topshop Australia administrators Ferrier Hodgson declined to comment.
![Topshop Australia founder Hilton Seskin.](http://web.archive.org./web/20170709102827im_/https://www.fairfaxstatic.com.au/content/dam/images/g/v/q/3/q/4/image.related.articleLeadwide.620x349.gx7box.png/1499491761018.jpg)
One option to save the company could be to transfer ownership of the trimmed down Australian operation to its UK franchisors.
Topshop was launched in Australia by a company trading as Austradia, which is controlled by retail veteran Hilton Seskin.
![Rescue bid? Topshop's UK founder, Sir Philip Green.](http://web.archive.org./web/20170709102827im_/https://www.fairfaxstatic.com.au/content/dam/images/g/p/r/o/5/y/image.related.articleLeadwide.620x349.gx7box.png/1499491761018.jpg)
Last month, at an event hosted by the Australia-Israel Chamber of Commerce in Sydney, Mr Seskin reportedly said the Topshop inventory model was doomed to fail in Australia.
"We had absolutely, well I'm going to say very, very little control over what inventory came into the market," Mr Seskin said, according to News Limited.
![Topshop Australia administrator Ryan Eagle, of Ferrier Hodgson, ahead of a creditors' meeting last month.](http://web.archive.org./web/20170709102827im_/https://www.fairfaxstatic.com.au/content/dam/images/g/w/k/h/p/f/image.related.articleLeadwide.620x349.gx7box.png/1499491761018.jpg)
"Products that were made in Asia were shipped to the UK, put through a recycling plant, as you call it, a warehouse facility in the UK, converted from US dollars to [British Pounds], flying it out to Australia. So, the model was just broken."
Other reasons given for Topshop's failure in Australia include delaying the launch of its online store until earlier this year, and poor quality of stock.
After closing its Australian e-store in May, Australian customers can still shop via the UK site, which offers free shipping.
When it went into voluntary administration on May 25, Topshop Australia had debts totalling $35 million.
Topshop launched in Britain in 1964 and sells clothes, shoes, make-up and accessories.
Its fast-fashion model works on high-turnover, low-cost product that is often produced at lightning speed; copies of runway styles by international designers can be on the racks within week, not the standard six months it takes regular retailers.