200 jobs lost as G-Star Raw becomes a coronavirus fashion victim
Around 200 jobs are being lost as denim chain G-Star Raw fails to attract a buyer after falling into administration.
Administrators from Ernst & Young (EY) were appointed to the local arm of G-Star in May, citing the impact of the coronavirus downturn on a sector already under pressure.
Despite what the administrators described as an extensive marketing campaign, no buyer has been found for the business and all 57 G-Star stores have now been shut, resulting in job losses.
In May, the administrators said commercial landlords were the major creditors of G-Star Australia.
“G-Star Raw is a globally recognised brand,” the EY administrators said in a statement today.
“The fact that no party was able buy the business reflects the high level of uncertainty regarding the future prospects for the retail sector in Australia.”
G-Star’s collapse follows a string of retailers entering voluntary administration last year and in early 2020, with some already struggling prior to the impact of a horror bushfire season and coronavirus restrictions.
Some retailers, however, have seen sales surge over the past few months, with coronavirus restrictions spurring purchases related to home offices, home improvement and entertainment.
Online sales have seen particularly strong growth during the pandemic, as people avoided going to crowded shopping centres.
However, consumer confidence dived this month, with the Westpac-Melbourne Institute monthly index tumbling 9.5 per cent nationally amid the reimposed lockdown in Melbourne.
The measure of whether people think it is a good time to buy a major household item slumped by 13 per cent in the month, to be 26.5 per cent below the level seen a year ago.