Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Second-hand luxury fashion business Luxe Collective has closed down after seven years of trading, under a year after the business suffered a burglary.
In a post to Linkedin, co-founder and chief executive Ben Gallagher, who set up the business with his brother Joe, confirmed that the brand “will no longer exist”.
Set up in 2018, Luxe Collective experienced a period of impressive growth as a luxury reseller and even secured a £100,000 investment on BBC show Dragon’s Den from entrepreneur Stephen Bartlett in return for 3% of their business in January 2024.
However, the business suffered a major break at its warehouse in Ormskirk, Lancashire, last July which saw thieves make away with over half of its stock to the value of £500,000.
Gallagher said this 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”.
As such the brothers were unable to keep the business operational.
In the post Gallagher 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.
“This is the hardest decision I’ve ever had to make…But, 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.Fighting daily just to keep the lights on has really taken a lot out of us. We have tried every single avenue we possibly could to carry on – but we’ve finally been defeated. 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 added: “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 & strategic decision making. I made decisions that, in retrospect, I regret and I got wrong. I take 100% 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.”
