// Lavish Alice’s wholesale arm has collapsed into administration after increasing financial challenges pushed it over the edge
// The move will see the fashion brand move to an online-only DTC model
The wholesale arm of Lavish Alice has collapsed into administration after increasing financial challenges pushed it over the edge.
The move, which the label’s directors said was voluntary, will see the fashion brand move to an online-only D2C model.
Jeremy Woodside and Frank Ofonagoro of Quantuma have been appointed as joint administrators of Fast Fashion Collections International Limited.
None of the wholesale arm’s 20 staff will be impacted.
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Woodside said the business, which supplied various retailers such as Selfridges and Harvey Nichols, was “struggling with historic liabilities sustained during the pandemic and increased trading costs post Covid”.
Lavish Alice founder and director Matthew Newton said: “We took the difficult decision to prioritise our ongoing efforts and resource into the most profitable part of the business.
“Our ‘online-only’ and ‘online exclusive’ proposition will bolster our D2C growth even further, with customers naturally crossing to us directly from our wholesale partners.
“Wholesale margins became increasingly squeezed and harder to service. When carefully balancing their financial penalties, order cancellations, marketing contributions, early settlement discounts along with increased cost of sales and lower margins, it became an impossible challenge.”
Newton said the company’s resource was “best placed maintaining the record growth of pureplay”.
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