Trapstar, a London-based luxury streetwear brand famously worn by celebrities including Jay Z, Rihanna, Stormzy, and Central Cee, has been put up for sale on an insolvency marketplace, City AM can reveal. The brand, founded in 2005, is seeking a buyer to address working capital constraints that have impacted its inventory availability.
Financial Struggles
Trapstar popularized the "drop" retail model, releasing limited-edition collections via social media to generate hype. During the pandemic, demand surged, with turnover peaking at nearly £40 million in 2022. However, profits fell from £7.4 million in 2023 to £1.2 million, and sales dropped to £17.7 million in 2024. Advisers stated that the revenue decline was primarily due to working capital issues rather than a lack of demand.
Business Operations
In addition to its direct-to-consumer sales through its website and social media, Trapstar partnered with high-end retailers like Selfridges on Oxford Street. The brand also expanded internationally, with significant sales in Europe and the US. As of its latest accounts, Trapstar employs 57 people, and its four directors received a combined £3.6 million in annual remuneration.
The company noted that 2024 was challenging due to rising inflation and economic uncertainty, which increased costs and reduced operating margins. Despite this, returning customer sales and order numbers remained consistent, reflecting ongoing customer satisfaction.
