G-Star Raw collapses into administration

Hundreds of staff face an anxious wait after a worldwide fashion chain’s Australian business was smashed by COVID-19 – putting the future of 57 stores in doubt.

SMASHED by COVID-19, fashion brand G-Star Raw Australia has been put under the control of administrators who are now desperately trying to understand the company’s finances and protect hundreds of staff.

G-Star, which operates in dozens of countries across, has 57 outlets in Australia including seven in Queensland.

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The company predominantly sells denim clothing for men and women.

G -Star Australia was put under the control of administrators Justin Walsh, Stewart McCallum and Sam Freeman of Ernst & Young this morning.

The future of its 57 outlets and about 200 staff is now uncertain, with commercial landlords listed as significant creditors.

The administrators are conducting an urgent assessment of the company's affairs and to determine the strategy for the administration.

‘Traditional retailers were already facing business challenges before COVID-19,” Mr Walsh said.

“COVID-19 has certainly increased those pressures.

“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.”