Denim Icon G-Star RAW Collapses, Affecting 200 Aussie Workers
The Australian arm of the iconic denim brand G-Star RAW has gone into voluntary administration, leaving hundreds of jobs in question.
The Dutch-owned brand employs 200 staff across its 57 stores in Australia.
On Friday, Justin Walsh, Stewart McCallum and Sam Freeman from financial firm Ernst & Young were appointed administrators of G-Star Australia Pty Ltd.
According to the Australian Financial Review, G-Star Australia Pty Ltd did not have any debt which forced it into voluntary administration.
However, the administrators are conducting an urgent assessment of the company's affairs and will plan a strategy as soon as possible.
Walsh said major commercial landlords are significant creditors to the company, but those had been affected by the pandemic.
“Traditional retailers were already facing business challenges before COVID-19. COVID-19 has certainly increased those pressures,” Walsh said in a statement to 10 daily.
“We expect that as lockdowns are lifted and various levels of government stimulus take effect, retailers will experience an uptick, however, the impact remains significant.”