Dragons' Den star behind luxury fashion brand which won £100K investment from Steven Bartlett announces shock closure months after devastating stock burglary
A second-hand luxury fashion business has been forced to close just over a year after receiving a £100,000 investment on Dragon's Den after a devastating burglary.
Luxe Collective was set up in 2018 by brothers Ben and Joe Gallagher in Formby, Merseyside, and they had found success in recent years in the luxury resale market.
The brothers then appeared on the BBC show in January 2024 with co-owner Oliver Millar when entrepreneur Sara Davies said they were too successful to invest in.
However they did get a £100,000 investment from Steven Bartlett for just 3 per cent of their business, which was booming as they also became known on social media for sharing fashion stories and helping buyers distinguish between fake and real items.
But Luxe Collective suffered a major break-in last July at its warehouse in Ormskirk, Lancashire, as half of its stock was stolen with a value of more than £500,000.
They shared CCTV video of the thieves stealing boxes of stock and taking it away, but Lancashire Police eventually closed the case having been unable to find the culprits.
The brothers had been desperately trying to continue operating in recent months, but former staff said on TikTok last week that all employees had been made redundant.
And Ben Gallagher, 25, has now revealed that the business was 'no longer able to continue' after a year which he described as the 'most painful in my life'.
He said: 'Luxe Collective is closing down. 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.'
Mr Gallagher wrote on Instagram that he was now 'overwhelmed with relief – I've never been so mentally and physically drained, stress and anxious'.
He said the burglary 'not only affected the financial state of the company but also took such an emotional mental toll on me and my brother'.
Mr Gallagher told how this 'ultimately affected my leadership and strategic decision making' and he made choices which 'were not the right ones' and takes '100 per cent accountability for this'.
He claimed the criminals who broke into the premises 'haven't just ruined the company', adding: '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.'
Mr Gallagher continued: 'Although we have failed in succeeding with the brand, there are still things that no one will be able to take away from me.'
He then gave a list of highlights, including how he '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'.
Mr Gallagher said the company generated over £30million in revenue from 'starting in our bedroom with £0 investment' and it took him to cities including Tokyo and New York as well as fashion shows such as Valentino and Hugo Boss in Milan.
He added that he reached more than three million followers and one billion views on social media.
Mr Gallagher concluded: '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 and a fresh head to start something new with.
'To any customers this may affect, please reach out through the appropriate channels, and we will get back to you as soon as we can. To everyone who is reaching out publicly and privately, you don't understand how much it means during a time like this - thank you.'
A Lancashire Police spokesman told MailOnline today: 'This crime has been investigated as far as reasonably possible, and the case has been closed pending further investigative opportunities becoming available.'
Luxe Collective was set up in 2018 and had found success in the luxury resale market
On Dragons Den, it was revealed how the brand had amassed an estimated worth of £5million since the brothers started the company in a bedroom at home in Formby.
Mr Gallagher told the judges that his sister had wanted a pair of £400 trainers for Christmas, and he was impressed when his mother found a second-hand pair online for £100.
He explained that he became 'obsessed' with the website his mother had bought them on – so, using savings and part of a car loan, the brothers started buying up items from eBay and DePop.
As the business grew, the brothers also dedicated time to using social media to share fashion stories and now have 665,000 followers on Instagram and 1.7million on TikTok.
Davies had told them on the show: 'You can scale this business without anyone coming in. I'm sat here thinking 'Would I like a chunk of this business? Absolutely!
'But then I feel like you'd resent me because I'd want such a significant chunk of your business to just tell you to keep on doing what you're doing.'
They did eventually get an investment from Bartlett. MailOnline has contacted the entrepreneur for comment.
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