BrandAlley secures rescue deal following administration

Online off-price fashion retailer BrandAlley has been acquired out of administration in a pre-pack sale, allowing the business to continue trading under new ownership.

Administrators from BDO were appointed to BrandAlley UK on 29 May before completing an immediate sale of the business and most of its assets to BrandAlley International Limited, a newly formed company described as unconnected to the previous owner.

The deal brings an end to a lengthy strategic review, which had been underway for several weeks following the appointment of advisors earlier this year. The company had initially been exploring a debt raise as it sought to address financial pressures despite remaining a sizeable player in the UK off-price market.

Founded in 2008, BrandAlley operates a members-only flash-sales model across fashion, beauty and homeware, working with more than 1,000 brands and offering discounts of up to 80 percent.

In a statement on its website, BrandAlley said the transaction secures the future of the business and that customers will see no disruption. Existing orders will be fulfilled as normal, while returns and refunds will continue to be honoured.

While the rescue preserves a significant portion of the business, it has resulted in job losses, according to various media platforms. Among BrandAlley's 163 employees, 88 have transferred to the new company, while 15 were made redundant upon administration. A further 60 employees have been retained temporarily to support the transition, with a total of 75 roles expected to be lost.

In its statement, the company said the sale marks “an exciting new chapter” and that it remains “business as usual” for customers.