Lavish Alice shuts wholesale arm to become exclusively DTC
Celebrity-favoured fashion label Lavish Alice has "streamlined its offering" by moving the wholesale arm of the business into voluntary administration amid restructuring.
The Manchester-based company, founded by Matthew Newton and Lee Bloor in 2011, has assured staff that none of its 20 employees will be impacted by the decision.
In a statement, Lavish Alice said that while its website has "experienced significant growth and revenue continues to thrive", whereas the wholesale arm of the business has struggled with “financial penalties, order cancellations, marketing contributions, early settlement discounts along with increased cost of sales and lower margins."
Wholesale revenue, including partnerships with Selfridges, Harvey Nichols and ASOS, totalled over £5 million in 2022. Overall, gross revenue was over £17 million in 2022.
Matthew Newton, Co-Founder of Lavish Alice, said: "The Lavish Alice journey is only just beginning. We have traded throughout 2022 and demonstrated consistent post-pandemic growth. Demand for the brand and website sales are at a record high with revenue up +71% year-on-year and +76% pre-pandemic levels, across 100,000 transactions.
"The brand is now able to move forward with a renewed focus on our 600,000 strong D2C client list and we remain in a robust position to deliver on our significant growth plans for 2023."
Quantuma has been appointed to oversee the administration, which was made voluntarily, of Fashion Collections International Limited.