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Designerex, the world's largest peer-to-peer designer dress-sharing platform, has resumed operations as the voluntary administrator appointed last month fields inquiries from a raft of buyers looking to acquire the Sydney-based company.
A brief statement from Designerex this afternoon says that administrator Liam Bailey, from O’Brien Palmer, in conjunction with the platform’s co-founders Kirsten Kore and Costa Koulis, has made the decision to recommence trading.
The company says the move is in the best interests of the Designerex community, its supplier network, investors and “the rapidly growing fashion rental market”.
Designerex, which provides a platform for women to list and rent their designer dresses to other women, was placed into administration last month in the wake of a legal dispute with Adelaide-based app developer PixelForce.
Bailey was appointed administrator to the company and at the time he revealed to Business News Australia that he intended to undertake a sales campaign for the business or seek a restructure through a third party.
“I have undertaken to resume trading the business in my capacity as administrator in order to preserve the value of the business and assets in respect of which there has been significant interest from investors and potential purchasers,” Palmer said in a statement to Business News Australia this afternoon.
In a separate statement, Designerex confirms that since entering voluntary administration, there has been “significant interest from multiple parties in acquiring or investing in the business”.
“This interest reinforces both the brand’s proven value and the increasing appetite for sustainable, circular fashion models,” the statement says.
“We’ve been incredibly grateful for the ongoing support from our customers, stakeholders, and industry peers and are more committed than ever to delivering the secure, innovative experience Designerex is known for.”
Designerex was founded by Kore and Koulis in 2016 after Kore decided to rent one of her dresses to a complete stranger via Facebook. Since then, the business has grown to provide an avenue for people to make money from underutilised fashion that is sitting in their wardrobes.
The company currently has more than 44,000 dress listings globally with operations also in the US.
Problems at Designerex emerged earlier this year as reports emerged from platform users that they had not been paid for clothing rentals.
The company had blamed a spat with PixelForce for the delayed payments, a claim denied by the app developer which is founded and led by Hinney Lo.
Lo, an investor in Designerex after stumping up $200,000 for a stake in the company two years ago, revealed that the dispute was triggered after he informed the founders that PixelForce was approached by a third party looking to establish a similar platform to Designerex.
Lo said that he informed Designerex of the approach “out of courtesy and respect” and that this was a single inquiry that never materialised into a business transaction.
“We operate with honesty and integrity with all clients,” said Lo, who added that his company had not received any payments from Designerex for two years for any services it has provided to the company.
A social media post by Designerex earlier today spoke of the challenges faced by the business over the past few weeks as its platform was closed to users.
“We are now actively working to recapitalise the business and move forward in a way that best serves you, our customers, as well as our supplier community, investors, and broader stakeholders,” says the company.
“Our goal remains the same: to continue leading the way in peer-to-peer fashion renting and to deliver the experience you know and love.”
Designerex says it is working with the administrator to “secure the future of Designerex”.
“The administrators guarantee that all new rental fees incurred moving forward will be paid within five days of the rental end date,” says the company.
For those lenders waiting on a past payout, the company says it is working with the administrators for a payment date to be put forward in the coming weeks.
“The administrators will continue to be in touch with you as the restructure proceeds to provide you with information in regard to what you are owed,” the company says.
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