Topshop's owner saw substantial losses in 2016.

Taveta investments, the holding company of Arcadia and operator of Topshop, witnessed a substantial plunge of profits for the year of 79 percent.

This was largely seen as a result of on-going complications relating to the closure of BHS and an increasingly competitive retail market.

A report filed with Companies House by Taveta Investments revealed pre-tax profits for the 12 months to August-end dropped to £36.8 million, a considerable decline from the £172.2 million totalled in the previous year. Across the period, total sales witnessed a fall of 2.5 percent to £2.02 billion.

In a statement, the company commented on the disappointing figures for the year:

“The retail industry continues to experience a period of major change as customers become ever more selective and value conscious and advances in technology open up more diverse, fast-changing and complex sales channels.”

“Clothing has also become a less important part of the household budget,” it continued.

The company also highlighted economic uncertainty as a result of Brexit negotiations and the subsequent de-valuation of the pound sterling as another key contributor to dented profits.

Taveta’s statement reveals its profits were affected by £129.2 million in exceptional costs. These one-off charges included a £26.4 million provision due to the collapse of BHS last year, and the “subsequent regulatory investigations” that proceeded.

Taveta is the holding company of Sir Philip Green’s Arcadia group, which alongside Topshop, owns Miss Selfridge, Burton, Evans, Wallis and Dorothy Perkins.

At the height of the controversy surrounding BHS falling into administration, there were calls for Sir Green’s knighthood to be rescinded.

In February, Sir Philip agreed a a £363 million cash settlement with the Pensions Regulator to resolve the issue surrounding BHS failed pension scheme.

Alongside this, last year the company also set aside £21.8 million to address leases on loss-making stores in the view of maximising profitability in future years.

The Taveta-owned Arcadia Group currently employs around 45,000 people and has more than 2,500 concessions and store locations across the U.K.