Dutch clothing company G-Star Raw is restructuring in a move set to affect 10% of its global workforce as the impact of the Covid-19 pandemic continues to weigh on the business.
The firm employs more than 2,000 people worldwide and says 150 of the affected jobs are in the Netherlands where it has its headquarters.
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By GlobalDataLike most in fashion retail, G-Star has been hit by Covid-19, mainly in its physical stores. The crisis accelerated the transition to online, at the cost of the performance of physical stores, it said today (17 July).
In response to these shifts, the company put in motion an overall restructuring plan a few weeks ago, in order to restructure its store portfolio in several regions, it told just-style.
“This does not mean that we are exiting these regions, we are merely restoring the balance between physical stores, strategic partners and online presence, in order to better fit the new market reality,” a spokesperson for G-Star explained.
“Consequently, our revised store portfolio and an even bigger focus on online and strategic partners also ask for a simplified organisation with increased digital capabilities. Therefore, in the second and final phase of this plan we are restructuring our offices. We deeply regret that because of this 10% of all G-Star jobs worldwide is affected, of which 150 jobs in the Netherlands.
“With this new structure in place, however, G-Star will be fit for the future and will be able to anticipate faster to the continuously changing market circumstances. Therefore, we are confident about the future of G-Star and safeguarding the remaining positions.”
The company added it expects to finalise most of its restructuring within the third quarter of 2020.
The news comes after G-Star’s US unit filed for Chapter 11 bankruptcy protection earlier this month following a decision in May by the brand to reportedly enter into voluntary administration in Australia.
The Covid-19 pandemic has weighed heavily on the finances of many apparel retailers over the last three months and has seen a number file for Chapter 11. Among them are JCPenney, J.Crew Group and US luxury department store retailer Neiman Marcus.
Other recent victims include women’s fashion retailer RTW Retailwinds Inc, operator of the New York & Company chain, Brooks Brothers, Lucky Brand and the US operations of G-Star Raw – the last three during the past week alone.
