A UK fashion brand worn by celebrities like Rihanna and Stormzy has collapsed into administration after generating millions in profit in recent years. Trapstar, founded in 2005, was unable to find financial backing, leading to the appointment of administrators from Interpath Advisory on Friday following a two-month effort to secure support.
Financial Decline
The streetwear brand grew in popularity during the Covid pandemic, reporting a whopping £40 million in revenue in 2022. However, by 2024, revenue had dropped to £17 million. Profits also fell sharply, from £7.4 million to just £1.2 million in 2023. A spokesperson for the brand attributed the decline to working capital constraints impacting inventory availability, rather than any underlying demand or brand performance issues.
Potential Buyers
According to reports, there is interest from potential buyers as the brand seeks to overcome its challenges. Mike Ashley’s Frasers Group is thought to be considering a possible bid. The retailer released limited edition drops and was stocked in several department stores, including Selfridges on Oxford Street.
Trapstar employs 57 people, according to its latest accounts. The four directors of the brand receive a combined yearly remuneration of £3.6 million. The Mirror has contacted Trapstar for further comment.
