POPULAR online discount fashion site BrandAlley has collapsed into administration – with 75 workers losing their jobs.
The members-only shopping website, known for offering up to 80% off designer fashion, beauty, furniture and homeware brands, ran into financial trouble.
Sign up for the Money newsletter
Thank you!
Kiri Holland and Danny Dartnall, from accountancy firm BDO, were appointed joint administrators of BrandAlley UK Limited today.
The business has now been sold through a pre-pack administration deal to a new company called BrandAlley International Limited.
Of the firm’s 163 employees, 88 have been kept on as part of the sale.
Fifteen were made redundant immediately when administrators were appointed, and a further 60 will stay on temporarily to help with the handover to the new owner.
POST IT
Royal Mail still plans to AXE Saturday post as it misses first-class targets AGAIN
BITTER BLOW
Major UK brewer cuts alcohol content in FOUR popular pints to dodge tax raid
Customers have been told they can continue to shop on the site as normal, with all existing orders, returns and refunds to be honoured by the new company.
BrandAlley was founded in 2008 and has built a loyal following of around 48,000 active customers who snap up cut-price goods through flash sales, with each sale typically lasting around a week.
Shoppers spend an average of more than £100 per order, with the site running multiple sales every single day across more than 1,000 brand partners.
The business was originally launched through a joint venture between News International and BrandAlley France, before being sold to chief executive Rob Feldmann and chairman Bruce MacInnes in 2013.
The company had been exploring a number of strategic options – including a full or partial sale – after previously hiring advisory and restructuring firm Interpath to consult on its future.
It had initially looked at raising debt before broadening its options to include finding a buyer.
Over its 16-year history, BrandAlley has grown into a sizeable operation, snapping up a string of rival sites including Achica.com and Cocosa.com, as well as luxury homeware brand Lombok.
In 2023, it acquired Internet Fusion Group – bringing logistics and customer service in-house – along with lifestyle brands Surfdome and Country Attire.
Just last year, it made a majority stake acquisition in The Edit LDN, a luxury trainer resale platform.
Despite the acquisitions spree, the business has faced growing financial headwinds, with gross merchandise volume falling 2.7 per cent and net sales dropping 4.9 per cent in the year to December 2024.
