Dutch fashion label G-Star is suffering due to the corona crisis: in the US and Australia the brand applied for creditor protection, in Sweden bankruptcy was declared. Yet the company claims to be financially healthy.
Adjusted retail portfolio
G-Star's Australian division applied for creditor protection as early as May, the US subsidiary did so last week, and in Sweden the company was declared bankrupt last Monday. The difficulties are a consequence of the corona crisis, as a result of which the stores remained closed. Although most stores are now open again and the webshop is running at full speed, sales are still lagging behind.
The brand now wants to restructure and reduce the number of foreign stores, writes newspaper FD: in the US 7 out of 31 stores would remain, in Australia and Sweden a restart is being investigated. The retailer is trying to negotiate lower rents. "Although we are a financially healthy company, these structural market changes require an adjusted retail portfolio in a number of regions," says a spokesperson. However, it is difficult to determine what the financial situation of the company really is: G-Star has its registered office in Curacao and does not have to publish annual figures. The company is still largely in the hands of founder Jos van Tilburg.