Fashion brand G-Star Raw plunges in Australia after struggling to find new buyer – leaving 200 out of work as 57 stores closed forever
- G-Star Raw’s clothing chain collapses, leaving 200 Australian workers out of work
- The denim clothing label went into administration in May due to the pandemic
- The retailer joins a long list of clothing brands that have had to close their doors in 2020
Clothing brand G-Star Raw Australia has collapsed after unable to find a buyer.
The Dutch retail chain was run in May as a result of the coronavirus crisis and subsequent sales decline exacerbated by government-imposed lockdowns.
About 200 Australian workers in the denim giant’s 57 stores will now be out of work.
Pictured: A model wearing G-Star clothing. The Dutch denim giant has now closed its doors in Australia
The brand – which had 57 stores in Australia – made a name for itself in raw denim, specializing in unwashed, untreated denim as a base material
Justin Walsh, Sam Freeman and Stewart McCallum of EY were appointed as volunteer administrators of G-Star Australia Pty Ltd (the “Company”) on May 15, 2020, ”said Ernst & Young.
Despite an extensive marketing program, no buyer was found for the company’s affairs.
“As a result, all of the company’s stores are now closed.”
Justin Walsh told Daily Mail Australia on Friday, in the months since May, EY held a sale campaign to try to find a buyer for the company.
‘There was also a large stock. The best way to sell that was through the store network, so we spent that time lowering inventory levels and converting it into cash, ” said Mr Walsh.
He said that while the retail industry is currently in a very strong position due to government stimulus, there is underlying “uncertainty” plaguing the industry.
When flies fall: some of the recent victims of Australia’s retail industry
2016: Dick Smith, Masters Hardware, Payless Shoes
2017: Topshop Australia
2018: Avon, Espirit, Toys ‘R’ Us, Max Brenner, Roger David
2019: Ed Harry, Diana Ferrari, Napoleon Perdis, Ziera, Bardot, Harris Scarfe
2020: Tiger Lilly, Collette, Kikki K, G-Star, Jeanswest
“I think people have one eye for stopping the stimulus,” he said.
‘Uncertainty about what the sector might look like afterwards was a major cause of not being able to find a buyer.’
The brand has flagship stores around the world, including in New York, Paris and London.
Global superstars including Pharrell Williams and Jaden Smith have teamed up with the brand, which specializes in unwashed, untreated, raw denim as the base material.
It follows dozens of Australian brand names that have been in the records since early 2020.
Even before the impact of the lockdown was felt, swimwear label Tiger Lilly, accessory store Collette and office supply chain Kikki K were all taken into account.
Harris Scarfe, Bardot, Roger David and Napoleon Perdis have also fallen like flies over the past year – resulting in major job losses.
German supermarket chain Kaufland, meanwhile, withdrew from Australia this year, despite investing in a multi-million dollar Australian real estate empire in an effort to compete with Coles and Woolworths.
Australian chains meanwhile are considering closing stores as online sales skyrocket during the coronavirus blockade.
G-star first hit the market in 1989 with raw denim jeans that have not been washed or treated.
The brand has flagship stores around the world, including in New York, Paris and London