Just weeks after filing for Chapter 11 bankruptcy for its U.S. retail arm, sustainable denim brand G-Star Raw announced a global restructure that will “restore the balance between physical stores, strategic partners and online presence” and affect 10 percent of its employee base. Of the 10 percent of employees affected, 150 reside in the Netherlands, where its headquarters are based.
In a statement emailed to Rivet, G-Star said the restructuring was a months-long process that it kept confidential until it could inform colleagues, and was a result of the accelerated transition to online methods, which in turn hindered the performance of physical stores.
In addition to restructuring its office, G-Star Raw will also restructure its store portfolio in several regions, but stated it will not be exiting any of those regions entirely.
“With this new structure in place, G-Star will be fit for the future and will be able to anticipate faster to the continuously changing market circumstances,” G-Star wrote in the statement. “Therefore, we are confident about the future of G-Star and safeguarding the remaining positions.”
The brand noted it is supporting affected employees and expects to finalize the restructuring within Q3 2020.
G-Star cited financial difficulties from the coronavirus crisis when it filed for bankruptcy earlier this month. According to Apparel Resources, the largest creditor listed in its bankruptcy is its landlord at 475 Fifth Avenue in New York, owed $426,007. In May, the brand also entered into voluntary administration in Australia.
