Steven Bartlett-backed luxury resale platform Luxe Collective has been forced to close just 18 months after the Dragons鈥� Den star invested 拢100,000 in the business.
The Liverpool-based company was founded in 2018 by brothers Ben and Joe Gallagher in their parents鈥� back bedroom.
Luxe Collective鈥檚 business model saw it sell luxury goods for less than comparable brands by buying items off eBay and Depop, cleaning them up and selling them on Instagram.
The company had generated sales revenue of 拢30m but they never recovered from a break-in.
Writing on LinkedIn, Ben Gallagher wrote: 鈥淚 never thought I鈥檇 have to say this but the company I created seven years ago, at just 18 years old, will no longer exist.
鈥淎fter 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.
鈥淲e are no longer able to continue. 聽The last year has been the most painful in my life and to be truly honest, whilst I鈥檓 talking to you now, I鈥檓 overwhelmed with relief – I鈥檝e never been so mentally and physically drained, stressed and constantly anxious.鈥�
Ben Gallagher , co-founder & CEO, Luxe Collective Fashion
Gallagher said it was 鈥榟ardest decision鈥� he鈥檇 ever had to make but he鈥檚 exhausted all options.
鈥淚t鈥檚 easy for me to sit here and say the only reason as to why we鈥檝e failed is the robbery but that鈥檚 not entirely true,鈥� he admitted.
鈥淭he break-in not only affected the financial state of the company but also took such an emotional and mental toll on me and my brother which ultimately affected my leadership and strategic decision-making.
鈥淚 made decisions that, in retrospect, I regret and I got wrong. 聽I take 100 per cent accountability for this, it鈥檚 on me.
鈥淭he criminals who broke in haven鈥檛 just ruined the company. They鈥檝e ruined the livelihoods of not just me and my brother but all the amazing staff that we have had to make redundant and who鈥檝e lost their jobs in the process.
鈥淚 want to thank everybody who, over the last seven years, has shown support to me, my brother and my company.鈥�
The 25-year-old said he was proud of his achievements, which included reaching over three million followers and 1 billion views on social media
鈥溾仩I started this brand as a teenager and in the space of seven years it was recognised all over the world and got the whole industry talking about us,鈥� he said.
鈥溾仩We generated over 拢30m in revenue from starting in our bedroom with 拢0 investment.
鈥淏ut, most importantly, I built a relationship with my brother that would never have existed without going on this journey with him.
鈥淣ow, we鈥檙e both back to square one. Not left with much except the seven years of priceless experience.
鈥淏ut now we finally have a fresh head to start something new.鈥�
The brothers, who described themselves as 鈥榰nemployable鈥�, came up with the idea for Luxe Collective after identifying a gap in the market for women鈥檚 pre-loved designer wear.
During their appearance on Dragons鈥� Den, they said that in one month they鈥檇 had 100 million views across their social media platforms.
As well as Bartlett, Luxe Collective secured rival offers from fashion industry entrepreneur Touker Souleyman and Deborah Meaden but opted for Bartlett after citing his Diary of a CEO podcast as being an inspiration for their business.
Last year the company鈥檚 highly-rated social media lead Isobel Cowell left the business. According to Companies House, Luxe Collective鈥檚 accounts are overdue.