UK clothing brand loved by celebs plunges into liquidation

UK streetwear brand Trapstar, founded in 2005 and popular among celebrities such as Stormzy, has entered administration after struggling to secure financial backing despite generating significant profits during the Covid-19 pandemic. The company, which reported revenues of £40 million in 2022, faced a sharp decline in revenue and profits in 2023 and 2024, with turnover dropping to £17 million and profits falling from £7.4 million to £1.2 million. Administrators from Interpath Advisory were appointed following a two-month effort to find financial support for the business. Trapstar’s decline has been attributed to a recent drop in revenue rather than issues with brand demand or performance, according to a company spokesperson. The brand, known for its limited edition drops and presence in major department stores like Selfridges on Oxford Street, employed 57 people as per its latest accounts. Despite the downturn, there remains interest from potential buyers, with reports suggesting that Mike Ashley’s Frasers Group may submit a bid as the company navigates the insolvency process. The brand’s financial struggles come after a period of growth fueled by increased demand for streetwear during the pandemic. However, the sharp revenue decrease highlights the volatility of the fashion retail sector and the challenges faced by brands reliant on trends and celebrity endorsements. The directors of Trapstar reportedly receive a combined annual remuneration of £3.6 million, underscoring the high stakes involved in the company’s operations. As Trapstar seeks new ownership or restructuring options, the outcome will be closely watched by industry observers given its previous success and cultural relevance. The administration marks a significant development in the UK fashion landscape, reflecting broader pressures on retail brands in a post-pandemic market environment.