The G-Star RAW Chapter 11 filing earlier this month in Los Angeles, is a sign of ever-increasing problems in the commercial real estate sector: in the G-Star Chapter 11 petition, the 20-largest creditors listed were all commercial landlords.G-Star RAW has established itself in malls and premium outlets in multiple urban areas, largely concentrated in Los Angeles, Chicago and New York. It is, of course, commercial landlords in these largest cities that are being hardest hit by the COVID-19 shutdowns.
Headquartered in Beverly Hills, the company is relatively debt-free–and is apparently well operated. So the pandemic-related shutdown could not have come at a worse time. A review of financial statements filed in the G-Star RAW Chapter 11 filing shows a thriving company that significantly increased revenue last year, earning over $2 million profit in fiscal year 2019.
G-Star has carved a niche in the fashion industry by: “fusing high-level craftsmanship with street level edge to create a new denim sector; the positioning of raw, untreated denim as a wearable and desirable material,” according to its about us web page.