DEAD END: British online retailer Avenue 32, which sold contemporary women’s wear, has shut down, the company said Wednesday.
The business posted a message on its web site: “Goodbye…After 6 wonderful years, we have decided to focus on new projects and so, sadly, Avenue32.com is now closed. Thank you for being such loyal customers. Orders placed before 11th August 2017 will be processed as normal and the returns period remains at 15 days from receiving your order.”
Launched in 2011 by chief executive officer Roberta Benteler, who had spent her career in private equity, Avenue 32 was backed by Germany’s Benteler Group, which makes steel tubes, components and systems for the auto industry.
Sources said the closure came down to financing as the company struggled to generate sales. Financials experts say it’s difficult for small online retailers to secure funding and financing nowadays: Not only do they have to show they are profitable, they are also facing competition from all directions. They have to compete with the big online luxury players such as Net-a-porter.com, Moda Operandi, Stylebop.com, Mytheresa.com Farfetch and Matchesonline.com, stand-alone brand sites and Instagram sellers.
One industry source speculated that the company’s failure also came down to customer acquisition, which is expensive.
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