Steven Bartlett-backed luxury resale platform Luxe Collective has been forced to close just 18 months after the Dragons’ Den star invested £100,000 in the business.
The Liverpool-based company was founded in 2018 by brothers Ben and Joe Gallagher in their parents’ back bedroom.
Luxe Collective’s business model saw it sell luxury goods for less than comparable brands by buying items off eBay and Depop, cleaning them up and selling them on Instagram.
The company had generated sales revenue of £30m but they never recovered from a break-in.
Writing on LinkedIn, Ben Gallagher wrote: “I never thought I’d have to say this but the company I created seven years ago, at just 18 years old, will no longer exist.
“After a year-long fight after we were broken into last year, in which both me and my brother were doing all we could just to get us through to the next day.
“We are no longer able to continue. The last year has been the most painful in my life and to be truly honest, whilst I’m talking to you now, I’m overwhelmed with relief – I’ve never been so mentally and physically drained, stressed and constantly anxious.”
Ben Gallagher , co-founder & CEO, Luxe Collective Fashion
Gallagher said it was ‘hardest decision’ he’d ever had to make but he’s exhausted all options.
“It’s easy for me to sit here and say the only reason as to why we’ve failed is the robbery but that’s not entirely true,” he admitted.
“The break-in not only affected the financial state of the company but also took such an emotional and mental toll on me and my brother which ultimately affected my leadership and strategic decision-making.
“I made decisions that, in retrospect, I regret and I got wrong. I take 100 per cent accountability for this, it’s on me.
“The criminals who broke in haven’t just ruined the company. They’ve ruined the livelihoods of not just me and my brother but all the amazing staff that we have had to make redundant and who’ve lost their jobs in the process.
“I want to thank everybody who, over the last seven years, has shown support to me, my brother and my company.”
The 25-year-old said he was proud of his achievements, which included reaching over three million followers and 1 billion views on social media
“I started this brand as a teenager and in the space of seven years it was recognised all over the world and got the whole industry talking about us,” he said.
“We generated over £30m in revenue from starting in our bedroom with £0 investment.
“But, most importantly, I built a relationship with my brother that would never have existed without going on this journey with him.
“Now, we’re both back to square one. Not left with much except the seven years of priceless experience.
“But now we finally have a fresh head to start something new.”
The brothers, who described themselves as ‘unemployable’, came up with the idea for Luxe Collective after identifying a gap in the market for women’s pre-loved designer wear.
During their appearance on Dragons’ Den, they said that in one month they’d had 100 million views across their social media platforms.
As well as Bartlett, Luxe Collective secured rival offers from fashion industry entrepreneur Touker Souleyman and Deborah Meaden but opted for Bartlett after citing his Diary of a CEO podcast as being an inspiration for their business.
Last year the company’s highly-rated social media lead Isobel Cowell left the business. According to Companies House, Luxe Collective’s accounts are overdue.