UK: Luxury Electric Providers Fear Collapse, My-Wardrobe Will Collapse In Three Months

Britain

My-wardrobe seems to be unable to escape the fate of bankruptcy, sources said that the company will be bankrupt in liquidation within 3 months.

Since last month, the site has been cleared by forty percent off, and Thanksgiving has fallen to the website at half price.

Beginning in 2013,

News continues, along with the collective departure of the founder's Sarah Curran team, including the pursuit of the third round of financing and listing rumors, which are considered the smoke bombs released by the company. In fact, the company went bankrupt in 2013.

However, the private equity fund Growth Capital Acquisitions eventually acquired My-wardrobe parent company Meemi Limited, making the e-commerce company exempt from bankruptcy in 2013.

After the acquisition of My-wardrobe by Growth Capital Acquisitions, Andrew Curran, the co-founder of My-wardrobe quit in 2010, returned to My-wardrobe as chief operating officer, and is ready to lead the electricity supplier out of trouble.

In 2011, David Worby, the chief executive officer of Harrods Harold, My-wardrobe, a senior department store retailer, and Joanna Stephenson, chief executive officer, announced the immediate withdrawal from the company.

After Andrew Curran returned to the interview, he said that the My-wardrobe positioning was too high. He would re adjust the product structure so that My-wardrobe positioning would be more competitive between the ASOS, PLC (ASC.L) and the luxury electronics giant Net-a-Porter.

In addition, the focus of My-wardrobe's development will also shrink from international expansion to the United Kingdom. Andrew Curran pointed out: "the growth potential of the UK is huge enough. I don't understand why we focus on Asia."

However, the return of Andrew Curran was only one quarter, and he left the company again in March 2014.

My-wardrobe was developed in 2006 by Sarah Curran, a former editor, and her ex husband Andrew Curran from a boutique in North London.

In 2010, the website received an investment of nearly 6 million pounds from the European Vc firm Balderton Capital. In 2011, it was injected with a 2 million 300 thousand pound fund.

Reported that in the year ended June 2011, the monthly traffic volume of about 900 thousand times My-wardrobe through international expansion to achieve operating income of 13 million pounds, an increase of 75% over the same period last year.

Nevertheless, My-wardrobe still recorded a net loss of 3 million 800 thousand.

After that, the website hopes to seek a third round of financing, raising 3 million pounds to accelerate the pace of international expansion, and some will also be used to pay operating costs and fill losses.

But continued cash inflow and accumulated losses made My-wardrobe's financial crisis worse in October 2013, when the electricity supplier merged its two offices in London and Nottingham, leaving only procurement and sales teams to deal with the necessary business in Nottingham.

My-wardrobe also has offices in New York, Sydney, Dubai and Oslo.

Before My-wardrobe was on the verge of bankruptcy, another fashion business LN-CC in London, England, was also bankrupt due to the cash flow problem. However, it was bought by Level Group of Italy e-commerce service group to avoid bankruptcy. LN-CC founder and creative director John Skelton will continue to serve as creative director.

Yoox multi brand business website

Retail and

Analyst Tang Xiaotang said that the large-scale bankruptcy of luxury goods providers is inevitable. "The overall downturn of luxury goods industry and luxury electric providers can not offer discounts on a large scale. This is actually a" buyer's shop "business model, which is difficult under the current economic and retail environment.

At present, the world's most famous luxury electric business is Italy's Yoox and the UK's Net-a-Porter, the former being the only luxury luxury electricity supplier, but it also showed a quarterly downturn in 2014. So far this year, the Yoox SpA (YOOX.MI) share price has fallen by more than 40%. The three quarter and the first nine months of the group's earnings released earlier this month showed that the group's total sales in the nine months ended September 30, 2014 were 366 million 300 thousand euros, up only 14.7% from the 319 million 300 thousand euro a year earlier, which is quite close to the analyst's expected annual growth rate of 18%.

Net-a-Porter has also started to get involved in cosmetics and cheaper sports products.

"How many voices can you hear about Jiapin and Yu Zhong Wang? How long have you heard about the financing of the industry?" Tang Xiaotang, an analyst of retail and luxury goods, said that the world still does not have the industry environment of large-scale luxury goods suppliers, let alone China.

"In the past few years, the technology industry and the electricity supplier industry are hot, attracting a lot of investment, but there are also differences in the electricity supplier. The investment of luxury electric business in China has all failed, and it has been spared no sooner than escaped. It is all early pformation. Like vip.com, all others are struggling on the side of pformation."

The secoo.com Temple network, which is currently being advertised, is the only Chinese luxury electric provider with new financing in the past two years. In July this year, the company claims to receive $100 million in new financing. The leading investor has been a well-known fund China Media Capital Partners (short for CMC) Chinese cultural industry investment fund, which has been investing in the media direction. In addition, investors had invested in IDG capital, Ventech China, Sen co investment and Pangu innovation.

For the new financing of temple library, Tang Xiaotang, an analyst of retail and luxury goods industry, has also been pessimistic. "The whole industry in China is burning money and there will be no successful case."

Tang Xiaotang said that the exclusivity of luxury goods has greatly increased the threshold of e-commerce entry into the field. At present, the so-called luxury electric business in China has a crisis of confidence. The supply and selling problems are very sensitive. Although a few international brands are involved in cooperation, they can not be promoted. Besides, the main consumers in the e-commerce industry are still concentrated in Taobao, and the major consumers in the luxury goods industry are still concentrated in the physical stores.

In addition to this, international competitors also extended their tentacles to China early. In addition to the Yoox and Net-a-Porter mentioned before, InstantLuxe, a second-hand luxury trading platform in France, also landed on the Chinese market in October to speed up the strangulation of the industry.

Although Chinese consumers are still the world's largest consumer of luxury goods, Tang Xiaotang said the high-end consumer sector has a big relationship with overall economic income and household disposable income. "As China does not have a social application like instagram, Chinese consumers have not reached the ability to consume luxury goods on the Internet for a long time."