Denim fashion brand G-Star Raw has filed for Chapter 11 bankruptcy protection in the US after the effects of the Covid-19 pandemic weighed on business.
The LA-based brand said, like most in fashion retail, G-Star has been hit by Covid-19 as well, mainly in its physical stores. The crisis accelerated the transition to online, at the cost of the performance of physical stores.
“In response to these changes, we need to restructure our store portfolio in several regions,” a spokesperson for G-Star said. “This does not mean that we are exiting regions, we are merely restoring the balance between physical stores, strategic partners and online presence.
“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.”
The move follows a decision in May by the brand to reportedly enter into voluntary administration in Australia, and follows that of other firms to have filed for bankruptcy protection as the pandemic impacts retail sales.
On Friday (3 July), Lucky Brand Dungarees filed for Chapter 11 bankruptcy, while others to have done so recently have included JCPenney, J.Crew, and Neiman Marcus.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData