Only weeks after Chapter 11 has been filed for bankruptcy for its retail arm, the established G-Star Raw Denim company declared a worldwide reorientation to align physical stores, strategic alliances and online operations “and impact 10 percent of its staff base.
The transformation was a lengthy and secret process for months before coworkers were told about it and the rapid on-line transfer stopped the success of physical shops. G-Star Raw also reorganizes its portfolio in different countries but does not abandon all of them entirely, in addition to the restructuring of its office. The company acknowledged that it supports the workers involved and expects the transition to be completed by Q3 2020.
When G-Star declared bankruptcy earlier this month, G-Star cited financial difficulties due to the coronavirus crisis. In conjunction with Apparel Capital, its landlord at 475 Fifth Avenue in New York, owing $426,007, is the biggest creditor listed during bankruptcy. The company also agreed to work in Australia in May.
