Dutch-owned fashion retail chain G-Star Raw Australia has collapsed after failing to find a buyer. The company went into administration in May as a result of the COVID-19 crisis and the downturn in sales resulting from lockdowns. About 200 workers at the denim giant's 57 stores, which will be permanently closed, will now be rendered jobless.
Justin Walsh, Sam Freeman and Stewart McCallum of Ernst & Young were appointed as Voluntary Administrators of G-Star Australia Pty Ltd in May 2020.Dutch-owned fashion retail chain G-Star Raw Australia has collapsed after failing to find a buyer. The company went into administration in May as a result of the COVID-19 crisis and the downturn in sales resulting from lockdowns. About 200 workers at the denim giant's 57 stores, which will be permanently closed, will now be rendered jobless.#
The company tried hard to find a buyer.
'Alongside that, there was a large amount of stock. The best way to sell that was through the retail network, so we spent that time running down the stock levels and converting it to cash,' Walsh said.
He said that although the retail sector is actually in a very strong position at the moment as a result of government stimulus, there is underlying 'uncertainly' plaguing the industry, according to Australian media reports.
Many Australian chains are meanwhile considering shutting down stores as online sales skyrocket.
G-Star RAW last month filed for Chapter 11 bankruptcy protection in the United States due to the impact of the pandemic. The firm’s physical stores have been steadily running into losses because of closures.
Fibre2Fashion News Desk (DS)
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