Mon, 17 Apr 2023 | ADMINISTRATION
Leicester-based fashion brand Just Hype has been acquired out of administration. The business, along with sister company Toatee Limited, has been jointly acquired by Lux360 and JHB2C Ltd after falling into administration last month.
Just Hype was founded in 2011 and primarily specialised in streetwear clothing for children and young people. It sold directly to consumers online and from its sole retail location on London’s Carnaby Street. Its products were also stocked with some of the UK’s largest retailers, including Next, Sports Direct and John Lewis. Many of its products included high-profile collaborations with brands including Coca-Cola, Disney and Star Wars.
The firm’s growth, however, was adversely impacted by the COVID-19 pandemic, falling sales leaving it with a large amount of excess stock. The company’s issues were subsequently exacerbated by the cost of living crisis.
Just Hype co-founder Bav Samani said: “As with many online retailers we expanded very aggressively during COVID and in the aftermath were left with a large stock overhang. In addition, we had spent a considerable amount on advertising which although elevated the brand significantly left us heavily indebted.”
Samani added that the company had been left “exposed and unable to trade effectively” as a result of falling sales and the cost of living crisis.
Quantuma CEO Carl Jackson and director Kelly Mitchell were appointed as joint administrators on March 31 2023, completing a sale of the business and its assets shortly afterwards. Just Hype will continue to trade online and through stockists under the new ownership, but its Carnaby Street store was closed prior to the appointment of the joint administrators. The company employs 82 staff, with all jobs having been secured following its acquisition.
Joint administrator Kelly Mitchell said: "The business was adversely affected by the COVID pandemic, which was further compounded by the cost of living crisis. Just Hype has a globally recognised brand presence, regularly collaborating with other established brands. However, the investment in marketing to raise profile did not translate into revenue, as a result of public reduction in spending on non-essential items.”
"Our strategic accelerated sale process enabled us to protect the value in the brand and the established online platform to improve realisation prospects. The absence of a break in supply of goods and services is also likely to ensure a more effective debt collection process to ensure realisations are maximised on behalf of creditors. I am delighted to have been able to complete the sale of this popular worldwide street fashion brand, and in doing so, securing all roles of all staff members."
Bav Samani added: “Our new investor has a strong international distribution network which will be of mutual benefit to us both as the brand continues to grow both domestically and internationally”.
“We do not anticipate any significant changes to the business, our products or services, or our commitment to our customers. Instead, the new investors will enable us to continue to grow and operate with greater strength and agility, helping us achieve our long-term goals and objectives.”
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