Unbound Group is believed to be putting a halt on its multi-brand platform following a lacklustre trading period and a withdrawn investment deal.
The group initially launched the site last July, offering up 14 footwear and clothing brands, including Birkenstock and Skechers.
According to Drapers, Unbound is set to pause all activity on the platform, with a holding page to be put in place in the coming weeks.
The media outlet cited a letter to Unbound’s partner brands as its source, where the group noted that it would be halting all activity with the brands and any upcoming partners following a strategic review.
The letter further outlined that it would be centering its attention around its core brand Hotter while the team looks into how to leverage its existing customer base.
Q1 environment ‘remained challenging’
The news comes after Unbound Group announced that an investment of 10 million pounds had been withdrawn by Marwyn Investment Management.
The company said it had been approached by the firm in the beginning of April with an unconditional offer that Unbound’s board then elected to expedite.
However, Marwyn later informed Unbound that its funding proposal had been withdrawn due to “concerns over current trading”, ultimately terminating the fundraising discussions.
Following the announcement, Unbound said that its trading environment had “remained challenging” over Q1, with “conditions worsening compared with those outlined in the FY23 trading update”.
While its revenues came in lower than anticipated, the board’s outlined cost reduction programme is believed to be on track to deliver 2.3 million pounds of annualised savings by Q1 of FY24.
The group added that it is expecting its profitability for Q1 to be in-line with previous expectations.
The board also noted it was “well advanced” into its wider review of the group’s operating structure in a bid to drive growth of revenue and profits over the medium term.