British streetwear label Trapstar, known for its celebrity following including Rihanna and Stormzy, has entered administration after failing to secure necessary financial backing. Insolvency specialists from Interpath Advisory were appointed on Friday following a two-month search for investment.
The London-based brand, founded in 2005, saw a surge in popularity during the pandemic, generating £40 million in revenue in 2022. However, recent financial struggles led to a sharp decline, with turnover dropping to £17 million in 2024 and profits falling from £7.4 million to £1.2 million in 2023.
A spokesperson for Trapstar attributed the revenue decline to working capital constraints affecting inventory availability, rather than a lack of demand. The company employs 57 staff, and its four directors collectively earn an annual salary package of £3.6 million.
Reports indicate interest from potential buyers, including Mike Ashley's Frasers Group. The brand, which previously stocked in Selfridges and other prestigious stores, is known for limited edition drops and remains popular despite its financial difficulties.
