Luxe Collective shuts down after devastating break-in and stress toll on founders
If you want to see the devastating impact of burglary on fashion businesses, look no further than Luxe Collective.
The secondhand luxury fashion business has closed, despite receiving a £100,000 investment just over a year ago. But it also endured a warehouse break-in last July in which half a million pounds worth of stock was stolen — around half of its entire inventory.
Following the decision to shut, co-founder Ben Gallagher said on Instagram: '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.
'The last year has been the most painful in my life and to be honest, whilst I'm talking to you now, I'm overwhelmed with relief – I've never been so mentally and physically drained, stress and anxious.'
He also said the break-in 'ultimately affected my leadership and strategic decision-making'. He explained that the break-in wasn't the only reason for the closure but it was linked because the stress meant he made choices that weren't 'the right ones'. He didn't specify those choices but added that 'I take 100% accountability for this – it's on me'.
The business had been set up in 2018 by the Merseyside-based brothers Ben and Joe Gallagher with business partner Oliver Millar also coming on board. They started buying items from eBay and Depop and built up a thriving resale business with a reputation for quality and authenticity. It received the £100k investment for a 3% stake in the firm on the BBC TV show Dragons' Den.
Despite the company having shared CCTV video of the robbery, the case was eventually closed with nobody being apprehended.
While the company last autumn received an insurance payment to cover the value of the stock and was therefore able to pay out anyone who was selling their secondhand fashion through the platform on consignment, it wasn't the end of the problems.
We've already mentioned the stress it brought with it. But just like any second-hand or antiques business, a huge issue is finding the stock to sell and Ben Gallagher had issued a social media appeal asking if anyone has 'anything to sell or might know someone who might have something to sell, go on our website, fill out a form and sell your items to us'.
All employees have now been made redundant with Gallagher saying the thieves '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.'
But in a TikTok video, he also listed the firm's achievements, including creating business that 'was recognised all over the world and got the whole industry talking about us'. And he said the firm generated £30 million+ in revenue from a standing start with zero investment, also achieving over three million social media followers and a billion views.
And in a touching moment he said it also strengthened his relationship with his brother.
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