G-Star succumbs to coronavirus virus hit

Youth fashion apparel retailer G-Star has been placed into voluntary administration.

In one of the first major retail collapses since the coronavirus pandemic forced many stores to close and consumers to stay home, youth fashion apparel retailer G-Star has been placed into voluntary administration.

Justin Walsh, Stewart McCallum and Sam Freeman of EY on Friday were appointed as joint and several administrators of G-Star Australia, with the chain well known for its line of jeans and casual wear.

The administrators were conducting an urgent assessment of the company’s affairs and would determine the strategy for the administration as soon as possible, a spokeswoman for EY said.

G-Star has 57 outlets and about 200 staff in Australia. Major commercial landlords are significant creditors of the company.

EY’s Mr Walsh said the coronavirus pandemic had an impact on the business.

“Traditional retailers were already facing business challenges before COVID-19,’’ Mr Walsh said. “COVID-19 has certainly increased those pressures.”