rhodaAnother high-profiler fashion retailer just bit the dust as Denim chain G-Star Raw recently entered voluntary administration forcing 200 jobs out the door.
According to ABC News, administrators from Ernst & Young were appointed to the local arm of G-Star last month, they revealed that the impact of the coronavirus was the main reason behind the unfortunate shutdown.
Despite an extensive marketing campaign, no buyer put their hands up to buy the business and as a result, all 57 G-Star stores have now been officially shut, resulting in major job losses.
The Ernst & Young’s administrators said in a statement: “The fact that no party was able to buy the business reflects the high level of uncertainty regarding the future prospects for the retail sector in Australia.”
While some retailers have seen sales double over the past few months despite the Coronavirus restrictions, several fashion retailers such as Bardot, department store Harris Scarfe, Colette by Colette and Hayman and denim brand Jeanswest had no choice but to shut down some of their stores as part of the administration process.
By September the JobKeeper, and the hold on loan repayments to banks and evictions by landlords, are all scheduled to end so eventually we’ll find out which other retailers stay and which ones go.
Jason Harris
