G-Star Raw Retail Inc., the Los Angeles–based company managing the presence of the Dutch jeans brand in the US, has filed for bankruptcy. Its largest creditor on this bankruptcy list is its landlord at 475 Fifth Avenue in New York, to whom it owes US$426,007.
“Like most in fashion retail, G-Star has been hit by Covid-19 as well, mainly in our physical stores. This crisis accelerated the transition to online, at the cost of the performance of physical stores,” said the jeans specialist in a note.
“In response to these changes, we need to restructure our store portfolio in several regions. This does not mean that we are exiting regions, we are merely restoring the balance between physical stores, strategic partners and online presence,” G-Star continued.
“At this moment, we are revising our store portfolio in the US and Sweden. In the US we took the initiative to file for Chapter 11, subchapter 5. This is possible due to a minimal amount of debt. It is our intention to continue with a smaller, healthy retail portfolio that better fits the current market situation. In Sweden, we will continue to serve our loyal consumers through other channels,” added the company.
G-Star Australia, running 57 stores and employing 200 people across the country, also recently announced its entering into voluntary administration. The step is part of the company’s restructuring plans, as confirmed by the company.