G-Star RAW Files for Chapter 11 Bankruptcy
The latest brand to buckle due to coronavirus-related financial woes.
Denim brand G-Star RAW has filed for Chapter 11 bankruptcy protection due to financial losses precipitated by the coronavirus pandemic. According to WWD, the Los Angeles-based company owes its largest sum, $426,007 USD, to its landlord at 475 Fifth Avenue in New York City, the location of its flagship store.
Court papers reveal that G-Star CEO Nicole Clayton specified that COVID-19 has “severely disrupted” the company’s business operations, and that the “global fallout from the pandemic is ongoing.” G-Star will be reassessing its retail footprint and restructuring its store portfolio in regions including the U.S. and Sweden.
In related news, Takashi Murakami’s production and management company Kaikai Kiki faces possible bankruptcy as well.