Why Luxe Collective is closing down after seven years
Luxe Collective has announced it is shuttering after seven years. The company, which was robbed of more than £500k in stock last year, said "the criminals who broke in... ruined the company".
Ben Gallagher, who founded Luxe Collective with his brother Joe, took to Instagram sharing: "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.
"We have tried every single avenue possibly could to carry on – but we finally been defeated."
Luxe Collective was founded by brothers Ben and Joe Gallagher as a consignment store in Liverpool in 2018. At the time, Ben was only 17 and Joe was 21, but they inquisitively predicted the future growth of the luxury resale market.
During an interview with TheIndustry.fashion last year, Gallagher said: "I had £1,000 in savings and Joe had just taken a loan out for £10,000 for a car in which he had £1,000 remaining. We started the company with just £1,200 with no further investment."
Ben Gallagher, Co-founder of Luxe Collective
From rare vintage gems to cult-classic designer sneakers, Luxe Collective became one of the go-to places for luxury re-commerce. In just seven years, the company generated £30 million in revenue.
It garnered a solid reputation and even caught the eye of Steven Bartlett on BBC's Dragons' Den, who gave the founders £100,000 for a 3% cut. This impressive feat on national TV may have brought the company more exposure than it bargained for.
In July 2024, a professional group stole around £500,000 worth of products from the Luxe Collective's warehouse. This was approximately 50% of what Luxe Collective owned, despite the warehouse being fitted with several cameras, alarms, locks and sensors to detect any unusual activity. A blind spot was identified and infiltrated.
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Gallagher continued: "It’s easy for me to sit here and say the only reason as to why we felt is the robbery. But that’s not entirely true.
"The break in not only affected the financial state of the company but also took such an emotional mental toll on me and my brother, which ultimately affected my leadership and strategic decision-making. I made a decision that, in retrospect, I regret – they were not the right ones. I take 100% accountability for this – it’s on me.
"The criminals who broke in haven’t just ruined the company. They ruined the livelihoods of not just me and my brother, but all the amazing stuff that we’ve had to make redundant, and who have lost their jobs in the process."
The Co-founder, whose face and northern accent is instantly regonasiable from countless live shopping events hosted on social media, went on to thank the company's supporters and hinted at his next venture. He added, "Now, we’re both back to square one. Not left with much except the seven years of priceless experience and a fresh head to start something new with…"
Read TheIndustry.fashion's interview with Luxe Collective's Ben Gallagher here.
@luxecollective It’s been amazing, thank you ❤️
