The luxury fashion brand behind Dragons’ Den Star wins Steven Bartlett’s £100,000 investment
A second-hand luxury business has been forced to close for more than a year after receiving a £100,000 investment in Dragon’s Study after a devastating burglary.
The Luxe Collective was founded by the Formby brothers in Merseyside, Ben and Joe Gallagher, who have achieved success in the luxury resale market in recent years.
The brothers then appeared on the BBC show with co-owner Oliver Millar in January 2024, when entrepreneur Sara Davies said they were too successful to invest.
However, they did get a £100,000 investment for Steven Bartlett, which is 3% of the business, which is exciting as they are also known on social media for sharing fashion stories and helping buyers differentiate between fake and real items.
But in July last year at its warehouse in Ormskirk, Lancashire, Luxe Collective suffered a major break-in as half of its shares were stolen and worth more than £500,000.
They shared CCTV videos of the thief stealing stocks and taking them away, but Lancashire police eventually shut down the case but could not find the culprit.
The brothers have been desperately trying to continue operations in recent months, but former employees said on Tiktok last week that all employees were laid off.
Ben Gallagher, 25, now revealed that the business “cannot continue” a year later, describing it as “the most painful thing of my life.”
Luxe Collective Brothers Ben and Joe Gallgher (center and right from Merseyside) and their business partner Oliver Millar (left) appeared on the BBC’s Dragons’Den in January 2014
Steven Bartlett
He said: ‘Luxe Collective is closing. I never thought I had to say that, but the company I founded seven years ago stopped existed at the age of 18.
“After a year of fighting, we were broken last year, my brother and I were doing everything we could get us to the next day and we will no longer be able to continue.”
Mr Gallagher wrote on Instagram that he is now “overwhelmed – I have never been mentally and physically exhausted, stressed and anxious.”
He said the burglary not only affected the financial situation of the company, but also caused emotional damage to me and my brother”.
Mr. Gallagher talked about how this “ultimately impacted my leadership and strategic decisions”, making the “not the right” choice and taking 100% responsibility for it.
He claimed the criminals broke into the house, “not only ruining the company”, adding: “They not only ruined the livelihoods of my brother and I, but also ruined all the great employees we had to make redundant and lose their jobs in the process.”
Mr Gallagher continued: “Although we failed to get the brand successfully, no one can take my thing.”
Luxe Collective suffered a major break-in at a warehouse in Ormskirk, Lancashire town, last July, as half of its shares were stolen and worth more than £500,000
Luxe Collective shared CCTV videos in which the stock thief was stolen and taken away, but Lancashire police later closed the case but could not find the culprit
He then listed a range of highlights, including how he “started the brand as a teenager, and over the course of seven years it has been recognized around the world and has the entire industry talking about us.”
Gallagher said the company had earned over £30 million from “starting in our bedroom with a £0 investment” and brought him to fashion shows such as Tokyo and New York, as well as Valentino and Hugo bosses in Milan.
He added that he has attracted more than 3 million followers and a billion views on social media.
Mr. Gallagher concluded: “But most importantly, I had a relationship with my brother that would never exist without traveling with him. Now, we both are back to the first one.
“It’s not that big but seven years of priceless experience and a new thing to start something new.
“For any customer that may affect you, please contact you through the appropriate channels and we will contact you as soon as possible. For everyone who lends a hand publicly and privately, you don’t understand how much it means during such a time – thank you.
A Lancashire Police spokesman told MailOnline today: “The crime has been reasonably investigated and the case has been closed until there is a further opportunity for investigation.”
Luxe Collective was founded in 2018 and has been successful in the luxury resale market
On Dragons Den, how the brand has accumulated an estimated £5 million worth of £5 million since the brothers started the company in a one-bedroom in Formby.
Mr Gallagher told the judge that his sister wanted a £400 coach for Christmas and he was impressed when his mother found a second-hand pair online for £100.
He explained that he was “obsessed” with the website his mother bought – so using part of savings and auto loans, the brothers began buying items from eBay and Depop.
As the business grows, the brothers also spend some time using social media to share fashion stories, now has 665,000 followers on Instagram, while Tiktok has 1.7 million.
Davies told them on the show: “You can expand this business without anyone coming in. I sat here and thought: “Do I want a big piece of this business?” Absolutely!
“But then I think you’ll be upset because I want most of your business to tell you to keep doing your own thing.”
They did eventually get investment from Bartlett. MailOnline has contacted entrepreneurs for comment.
