Major British fashion brand Trapstar, which has been worn by Rihanna and Stormzy, has entered administration.
On May 29, Interpath Advisory was appointed administrators, just two months after Trapstar attempted to find new financial backing.
Founded in 2005 by friends Mikey, Lee and Will, Trapstar sells luxury streetwear like hoodies, tracksuits and trainers.
Since its humble beginnings on Portobello Market in London, the brand has become popular among celebrities and has been worn by Rihanna, Jay-Z, Stormzy and Central Cee.
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Trapstar reportedly generated more than £100 million in revenue since it was founded, according to City AM.
British fashion brand Trapstar enters administration
2022 saw a peak year for Trapstar, when its revenue reached £40 million due to demand for hoodies and tracksuits during the pandemic.
However, the brand saw a decline in sales, with 2024 seeing a turnover of £17.7 million, representing a 55% drop in sales in two years.
Speaking to City AM, advisers for Trapstar said, “Management have advised that recent revenue decline has primarily been driven by working capital constraints impacting inventory availability, rather than any underlying demand or brand performance.”
Will Wright, UK CEO at Interpath added, “We hope to wrap up a sale of the business in short order.”
It’s understood that the fashion brand has some interest from potential buyers, including Mike Ashley’s Frasers Group.
Trapstar worked under a “drop” model of retail, seeing limited edition stock released at short notice to shoppers.
However, the fashion brand has retail partnerships with department stores, including Selfridges on Oxford Street, London.
Trapstar’s latest business accounts show it has 57 employees.
What does going into administration mean?
Going into administration means a company is not able to meet its expenses, debt obligations or other liabilities, according to SquareUp.com.
The Government website adds: “When a company goes into administration, they have entered a legal process (under the Insolvency Act 1986) with the aim of achieving one of the statutory objectives of an administration. This may be to rescue a viable business that is insolvent due to cashflow problems.
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“An appointment of an administrator (a licensed insolvency practitioner) will be made by directors, a creditor or the court to fulfil the administration process.”
A company going into administration gives it “breathing space” that frees a company from creditor enforcement actions” and allows for financial restructuring plans to be drawn up.
This could take the form of a sale to another company but if it cannot be reasonably saved, the administrator will aim to achieve a better return for creditors than would be likely if the company were wound up.
Have you ever shopped at Trapstar? Let us know in the comments.
