Exhibit 99.1





FOR IMMEDIATE RELEASE



         NEW YORK, NY - January 30, 2004 - G+G Retail, Inc. (the "Company")
announced today that an agreement in principle had been reached among the
holders of over 99% of the Company's 11% Senior Notes ("Notes") and affiliates
of Pegasus Investors L.P., holders of a majority of the outstanding voting
Common Stock and Preferred Stock of the Company's parent, G&G Retail Holdings,
Inc. ("G&G Holdings"), to restructure the Company's outstanding Notes and the
capital stock of G&G Holdings.

         The proposed arrangements contemplate the exchange of the Notes and the
outstanding Preferred Stock of G&G Holdings for new common stock of the Company
and the replacement of the Company's existing revolving credit facility with a
$50 million senior secured facility to be provided or arranged for by Ableco
Finance LLC. The contemplated recapitalization and restructuring is subject to
mutually acceptable definitive agreements. The transaction is expected to close
before the end of March 2004.

         Scott Galin, the Company's President and Chief Operating Officer,
stated that he and Jay Galin, the Company's Chairman and Chief Executive
Officer, supported the proposed restructuring, indicating that the complete
elimination of the Company's long term debt, the significant reduction of the
Company's ongoing debt service obligations and the new revolving credit facility
would greatly strengthen the Company's liquidity and cash position and its
ability to grow the business.

         The Company is a leading national mall-based retailer of popular price
female junior and pre-teen apparel with approximately 585 stores, principally
located in major enclosed regional shopping malls throughout the United States,
Puerto Rico, and the U.S. Virgin Islands under the Rave, G+G, Rave Girl and
Authentica names.

         Contact:   Michael Kaplan, Chief Financial Officer G+G Retail, Inc.
                    (212) 279-4961.