Topshop saviour is ready to quit in Kate Moss row
The TimesOctober 05, 2006
Topshop saviour is ready to quit in Kate Moss row
By Sarah Butler
IT LOOKED like a match made in high street heaven — the most famous face in fashion teaming up with the most powerful woman in British retail to design an exclusive clothes range.
However, the deal struck between Kate Moss and Topshop last month appears to have lost its sparkle after it emerged yesterday that Jane Shepherdson, the director who transformed the fortunes of the fashion chain, is threatening to quit over the decision to hire the model as a designer.
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The Times has learnt that Ms Shepherdson is in last-ditch talks with Sir Philip Green after complaining that she was not consulted properly over the hiring of Moss. Friends of Ms Shepherdson said that relations have broken down with Sir Philip following the contract with Moss, which was announced before London Fashion Week last month.
Ms Shepherdson, who was attending a conference with sales staff yesterday, has been widely praised for turning the once tacky outlet into the budget fashionista’s favourite store.
The news comes as Topshop is at the height of its popularity. It has leapt from its lowly place as a cheap high street store to become one of the world’s most fashionable retailers and it kicked off the shows at London Fashion Week last month.
The brand is the crown jewel in Sir Philip’s Arcadia group, which he bought for £850 million in 2002. Topshop has achieved sales of £600 million, is expected to produce profits of £100 million this year, and is planning stores in Russia, New York, and Paris.
Ms Shepherdson, marked as the most important woman in fashion by
Drapers, the fashion business journal, has led the store through its transformation over more than ten years.She has worked closely with Sir Philip and the pair have orchestrated the chain’s success.
Her anticipated departure follows a difficult week for Sir Philip, who was forced to concede that a 54 per cent plunge in operating profits at his Bhs chain, a separate business to Arcadia, had been “self-inflicted”. He admitted that problems with the store’s clothing range led to a 7.1 per cent drop in underlying sales. Sir Philip, who in 2004 tried and failed to buy Marks & Spencer, is due to release trading figures for Arcadia in the next few weeks.
He is not expected to pay a dividend to shareholders as the business faces a tough time on the high street.
Last year his family enjoyed a £1.2 billion dividend from the group. Ms Shepherdson would be one of a number of senior Arcadia directors to leave this year, after staff shared bumper bonuses in November last year, part of £95 million paid out by Sir Philip since acquiring the business.
Sir Philip and Ms Shepherdson were not available for comment.
TOP RETURNS
Topshop made record profits of £102 million in the year to August 2005
* It has 309 stores, including “the world’s largest fashion store” at Oxford Circus, London
* The Oxford Circus branch has annual takings of £100 million
* Part of the Arcadia group headed by Philip Green, alongside Miss Selfridge, Burton, and Dorothy Perkins
* Sir Philip was awarded a £1.2 billion bonus from Arcadia last year, Britain’s biggest ever. Group operating profits had risen by 10.1 per cent, with sales up 6.8 per cent
From timesonline.co.uk
