Fashion website My-Wardrobe.com has been rescued in a pre-pack administration late Monday night and its chief executive has exited the business.
David Worby, who was drafted in from Harrods eighteen months ago to drive international growth, has left alongside trading director Joanna Stephenson. The site appears to have struggled to attract brands comparable with one-time rivals such as Net-a-Porter aiming instead for lower tier labels.
Founder Andrew Curran says he took a more active role in the business six months ago as efforts intensified to turn its fortunes around. The Guardian newspaper said he had the backing of new investors.
But it was finally decided there was no alternative but to financially restructure the business. Administrators Leonard Curtis were appointed to manage parent company Meemi Limited on the November 18 and the deal was completed the same day.
Curran told Retail Week he would pull the site back into the black next year by revamping its product offer which has become too upmarket. 'We want to be in the middle ground between Asos and Net-a-Porter', he said. Curran said he couldn't understand why the business had focused on growth in Asia and the US.
'We now face the future with confidence,' he said in a separate statement.
Losses in the year to June 2012, the most recent year for which accounts are available at Companies House, were down 29 per cent to £4.9 million. Sales rose 23 per cent to £15.6 million.
Curran and former wife Sarah Curran founded the firm in 2006. He left in 2010 after the couple split and she left in July this year. She said in an interview with Vogue the same month her role at the firm had been reduced to being 'the face of the brand.'
Fashion director Carmen Borgonovo, who was poached from her senior post as Harper's Bazaar senior fashion editor a year ago, is one of the few senior staff to remain with the firm among a total of 48 other employees. The business was acquired by Growth Capital Acquisitions, a firm set up by Curran and his backers to repurchase the business.
A spokesman at insolvency expert Company Watch said there is still 'some debate' about the application of pre-pack administrations as existing directors, to whom the company is normally sold in such situations, and new investors often benefit over suppliers.
However, it adds: 'It is a very quick process and can get rid of debt, save jobs and allow a business to continue trading.'
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