BrandAlley has collapsed into administration, with 75 employees losing their jobs after the online discount fashion retailer fell into financial difficulty.
The members-only shopping platform, known for selling designer fashion, beauty products and homeware at discounted prices, appointed joint administrators from accountancy firm BDO today.
Kiri Holland and Danny Dartnall were appointed as joint administrators of BrandAlley UK Limited following a period of mounting financial pressure on the business.
The company has now been sold through a pre-pack administration agreement to a newly formed business called BrandAlley International Limited, The Sun reported.
Under the terms of the deal, 88 of the company’s 163 employees have retained their jobs.
Administrators confirmed the website will continue operating as normal under the new ownership structure.
Customers have also been told all existing orders, refunds and returns will continue to be honoured following the sale.
Immediately after the administrators were appointed, 15 members of staff were made redundant; a further 60 employees will remain with the company temporarily to support the transition process during the transfer of operations.
BrandAlley enters administration with 75 jobs lost after rescue sale
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BrandAlley launched in 2008 as a joint venture between Rupert Murdoch's News International and BrandAlley France.
The business specialised in members-only flash sales, allowing customers to purchase discounted luxury and designer products for limited periods.
Sales events typically lasted around one week, with new offers appearing daily across more than 1,000 brand partners.
The company built a customer base of approximately 48,000 active shoppers, with average order values exceeding £100.
LATEST DEVELOPMENTS
In 2013, BrandAlley was acquired by chief executive Rob Feldmann and chairman Bruce MacInnes from its original owners.
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Over the following decade, the retailer expanded through a series of acquisitions across the online fashion and homeware sector.
The business acquired rival platforms Achica.com and Cocosa.com, along with luxury furniture and homeware brand Lombok.
In 2023, BrandAlley purchased Internet Fusion Group, bringing logistics and customer service operations in-house while also adding lifestyle brands Surfdome and Country Attire to the group.
The company later acquired a majority stake in luxury trainer resale platform The Edit LDN.
Despite the expansion strategy, the retailer experienced weakening trading performance during the past year.
Gross merchandise volume fell by 2.7 per cent during the year to December 2024, while net sales declined by 4.9 per cent.
The business had been working alongside advisory firm Interpath to explore potential refinancing options, including raising debt funding or securing a buyer.
However, administrators said the company was ultimately unable to avoid insolvency proceedings.
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