Close×

G-Star Australia has collapsed into voluntary administration, with 57 locations and over 200 staff affected.

Administrators from Ernst & Young are conducting an "urgent assessment" of the business. 

This is the second time the Australian division has been placed into administration, a fact overlooked by media outlets.

As covered by ragtrader.com.au at the time, G-Star Australia first collapsed in 2015.

Denim Enterprises, which operated the Australian arm of G-Star, appointed administrators for its 21 store network.

Nick and Candice Hirons brought the denim brand to Australia through Denim Enterprises around 13 years ago.

They opened the first G-Star flagship store in Melbourne Central in 2003.

The new business structure could not withstand COVID-19, with major commercial landlords now significant creditors of the company. 

Administrator Justin Walsh said the climate is especially challenging for retailers. 

"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."

comments powered by Disqus