Fashion brand Lavish Alice has closed its wholesale division and moved online.
Lavish Alice said the decision comes because its website has flourished but the wholesale arm struggled to generate revenue.
The Manchester business said the reorganisation would not affect the 20 people based at its head office.
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It says global supply chain challenges, rising freight costs, currency exchange losses, wholesale cancellations, late delivery charges and “squeezed” profit margins for the change.
Because of these factors, it has now “streamlined its offering” and has become an online retailer.
Director Matthew Newton said: “The Lavish Alice journey is only just beginning. We have traded throughout 2022 and demonstrated consistent post pandemic growth.
“Demand for the brand and website sales are at a record high with revenue up +71% year-on-year and +76% pre-pandemic levels, across 100,000 transactions.
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“We took the difficult decision to prioritise our ongoing efforts and resource into the most profitable part of the business.
“Our ‘online-only’ and ‘online exclusive’ proposition will bolster our D2C growth even further, with customers naturally crossing to us directly from our wholesale partners.
Lavish Alice is a top fashion brand that has been worn by celebrities such as Katy Perry, Kendall and Kylie Jenner, and Ashley Graham.
It has appointed Quantuma to monitor Fashion Collections International Limited’s administration.
The company founders, Matthew Newton and Lee Bloor said the move was made voluntarily.
Source: Business Live
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