Gio-Goi stockists are planning to drop the brand after it was snapped up by JD Sports Fashion this week.
The young fashion business was saved from administration by the sportswear giant earlier this week. This did not affect the redundancies, in which 24 people are losing their jobs.
Retailers spoken to by Drapers said they would be wary of stocking Gio-Goi under JD Sports Fashion’s ownership having “learned the hard way” from similar acquisitions, such as Sports Direct’s purchase of Firetrap.
Luke Conod, managing director of Hereford young fashion indie Fit, said: “JD will just flood its markets with Gio-Goi and it’d be pointless us selling it - there’s no point using space and budget when it’s going into JD. I’d rather give the room and money to a new brand.”
Dan Jones, owner of young fashion indie Quest Clothing in Bangor, north Wales, agreed: “I’ve learned the hard way that the minute a brand gets bought by a big company, or goes into a large multiple, then I don’t stock it any more.”
Jones, who previously stocked Firetrap, added: “Before you know it, it’s in one of their stores with them selling it for less. It’s just ruining it for the independents.”
But a third indie said it was undecided, noting that JD was better at retaining the brand identity of its acquisitions.
“JD bought Fenchurch and that’s being wholesaled again,” its owner said. “Many of the brands JD bought have remained quite independent.”
JD Sports Fashion would not comment.