Even before the global health crisis, many of our favourite retail brands revealed they were entering administration. Now, global denim brand G-Star is the next to follow suit.
With 57 stores across the country, 200 Australian staff members are now at risk as administrators at Ernst & Young begin an urgent assessment of the company’s affairs from today.
Ernst & Young’s Justin Walsh said, “traditional retailers were already facing business challenges before COVID-19. 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.”
Despite the Dutch-owned company’s decision to enter administration, the Australian Financial Review has reported that the brand was not experiencing major debt.