Trapstar, the London streetwear label worn by celebrities including Rihanna, Jay-Z, Stormzy and Central Cee, has collapsed into administration after failing to secure fresh investment.
Administrators from Interpath Advisory were appointed on Friday following a two-month effort to find new financial backing for the business.
Industry sources indicated that Mike Ashley’s Frasers Group is expected to examine a possible bid for the company through the insolvency process.
Sources familiar with the situation said strong interest from potential buyers is anticipated as the sale process begins.
Both Frasers Group and Interpath Advisory declined to comment.
The collapse comes during a difficult period for Britain’s retail sector, with a number of fashion and online businesses struggling against weaker consumer spending and rising costs.
Trapstar suffered a sharp downturn in trading over recent years, with revenues falling from just under £40million in 2022 to £17.7million by 2024.
The company’s profits also dropped significantly, declining from £7.4million to £1.2million during 2023.
Trapstar collapses into administration as Frasers Group eyes rescue deal
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Advisers to the business said the deterioration was largely linked to cash flow pressures that restricted stock availability rather than falling demand for the brand itself.
The advisers 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.”
During the pandemic, Trapstar experienced a surge in popularity as customers increasingly sought out its hoodies, tracksuits and puffer jackets.
The business later acknowledged in 2024 that rising inflation and ongoing supply chain disruption had placed pressure on operating margins.
Founded in London in 2005, Trapstar became closely associated with British music and streetwear culture over the following two decades.
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A formal sale process is expected to commence immediately
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The company helped popularise the “drop” model of retail, releasing limited-edition collections at short notice through social media platforms in order to create scarcity and increase consumer demand.
The strategy proved particularly successful among younger shoppers attracted to the brand’s luxury streetwear image.
Alongside its direct-to-consumer online business, Trapstar also secured retail partnerships with major department stores including Selfridges on Oxford Street.
The company expanded internationally in recent years, generating significant sales across Europe and the United States.
Celebrity endorsements also played a major role in increasing the brand’s global visibility, with several high-profile musicians and performers regularly seen wearing Trapstar clothing.
The company’s latest accounts show Trapstar employed 57 members of staff.
Its four directors received combined annual remuneration totalling £3.6million.
Trapstar’s collapse came on the same day that online fashion retailer BrandAlley also entered administration.
BrandAlley, which operated a members-only retail platform selling premium brands including Dolce & Gabbana and Dyson products, was sold through a pre-pack administration process overseen by BDO.
Around half of BrandAlley’s workforce of 160 employees are expected to face redundancy following the deal.
Kiri Holland, joint administrator, said: “The company has faced financial difficulties in recent periods due to a challenging economic climate and a number of exceptional costs.”
A source familiar with the transaction indicated that the buyer was another online retail business.