Luxury accessories reseller Luxe Collective is “opening back up,” its founders announced, after they sold their company to Fashionphile.
Financial terms of the deal were not disclosed but follow a string of purchases made by Carlsbad-based luxury reseller Fashionphile. Last year, Fashionphile bought authenticated luxury products distributor Two Authenticators in Montreal. In late 2023, Fashionphile scooped up another Canadian company in retailer LXRandCo.
The moves have so far been aimed at bolstering business-to-business deals and distribution. The Luxe Collective deal is the first move at bringing the Fashionphile brand to customers in the U.K. and Europe.
“We’re back. Bigger and better than before,” Luxe Collective announced on social media late Monday.
It’s a second chance at life for Luxe Collective, which closed its doors in May after seven years in business. The company had been reeling from a warehouse robbery that claimed almost half its inventory.
Founded by brothers Ben and Joe Gallagher, Luxe Collective grew to a business that had generated nearly $40 million before the financial issues stemming from the robbery.
The newly acquired business will be recast as Fashionphile UK and will absorb both Gallghers into the company.
Joe is now director of operations for the U.K. business, while Ben is director of brand marketing for Fashionphile U.K.
“Fashionphile shares our vision for what luxury resale in the U.K. can become,” Joe said in a statement on the acquisition. “With their technology, scale and support, we can now realize that vision on a much larger scale.”
Growth Engines
Scale is key as Fashionphile continues to compete in a market with competitors such as The RealReal, Vestiaire Collective, Yoogi’s Closet and Rebag among others.
The company reportedly has annual sales in excess of $500 million and has been in business since its 1999 founding by President Sarah Davis.
While the latest deal brings the company into a new market, Fashionphile has also pushed to expand its offline revenue. That segment of the business is growing at a clip of 50 percent to 100 percent year over year, according to a report from Glossy.
Earlier this month, the company opened an expanded footprint at the Row DTLA complex in Downtown Los Angeles. Fashionphile now occupies over 32,000 square feet at the property for its flagship outpost, which includes a photo studio, climate-controlled storage for rare pieces and authentication services.
In May, Fashionphile tapped Nicole Richie to be its brand ambassador for the year in a deal that involves brand campaigns and a curated collection shoppable on the company’s site.
Fashionphile’s backed by an undisclosed investment made in 2019 by Neiman Marcus, which holds a minority stake in the business. That was followed up in 2020 with a $38.5 million Series B round from private equity firm NewSpring.
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