Rental fashion platform Designerex is now back to trading again after collapsing last month amid a legal dispute with a technology provider.
O’Brien Palmer managing partner and Designerex administrator Liam Bailey confirmed with Ragtrader that the platform has resumed trading 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.
Bailey did not share further information on the amount of buyer/investor interest.
Documents tabled to ASIC and obtained by Ragtrader show that the business owed just over $238,000 to around 2,000 members who had rented out dresses on the platform when Designerex entered administration.
In addition, Designerex’s key liabilities total $690,703. Key liabilities include around $181,000 to the Australian Taxation Office and around $33,000 to Australia Post. The top-value creditor is a related party to a former director of Designerex, who claims to be owed $309,925.
A further $280,000 is owed in SAFE note deals to three different parties. Simple Agreement for Future Equity (SAFE) note is a short-form agreement where an investor provides funds to a company in exchange for a contractual right to receive equity in a future equity round or liquidity event. These become debt only in insolvency.
Alongside this, $9,841 is owed to unrelated employees, with $190,000 owed to related employees.
On Instagram this week, Designerex told its customer base that the platform is now actively working to re-capitalise the business and “move forward in a way that best serves” its customers, supplier community, investors, and broader stakeholders.
“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,” they wrote.
The platform said it is working with administrators from O’Brien Palmer to secure the future of Designerex. According to Designerex, the administrators have guaranteed that all new rental fees incurred moving forward will be paid within five days of the rental end date.
“If you’re a lender awaiting a past payout, we’re working with the administrators towards having a payment date appear on your dashboard in the coming weeks. If your account hasn’t yet been updated, please check back again soon.
“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.
“Your belief in our mission has meant the world to us — and we’re more determined than ever to keep pioneering the future of fashion with you.”