Fashion brand G-Star Raw has become the latest victim of the dual issues of coronavirus and falling discretionary spend, falling into voluntary administration on Friday 15 May.
Consultancy firm EY was appointed as administrators for the business and are urgently assessing G-Star Raw’s viability and forming a strategy for the administration, which could affect the business’ 200 staff.
“Traditional retailers were already facing business challenges before COVID-19, [which] has certainly increased those pressures,” EY administrator Justin Walsh said.
“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.”
When contacted for clarification by Inside Retail, EY provided no further comment.
While many parts of the retail industry have suffered as a result of the coronavirus, the fashion industry has been hit particularly hard.
Between retailers such as Jeanswest, Tigerlily and now G-Star Raw collapsing, and brands such as Bardot downscaling to survive the administration process, it has become clear the industry is facing monumental pressure.
And as seen in the case of Bardot, private investors may not be so quick to pick up struggling brands that were previously attractive, with customers likely to begin focusing spending on essential and experiential purchases in a post-lockdown economy.