Rising costs have forced the closure of Edinburgh-based Atterley.com, the boutique online fashion retailer headed by tyre entrepreneur Mike Welch.
Brian Milne and David McGinness of French Duncan have been appointed joint provisional liquidators of the business, which was founded in 2012. It has closed with immediate effect with the loss of all 22 jobs.
"The company’s owners made arrangements to pay the staff’s final salaries shortly before the liquidation commenced," said Mr McGinness, director of restructuring at French Duncan. "There are no assets to sell so we will be closing the business down and not seeking a sale.”
READ MORE: Former Vogue editor joins Scottish fashion website Atterley
Backed by Glasgow-based Maven Capital Partners, PDS Multinational Group and a number of private investors, Atterley described itself as “home of the world's best boutiques". Its platform connected customers to more than 400 mainstream and independent designer brands handling online payments, orders, and the distribution of goods.
Mr Milne, a partner and head of restructuring at French Duncan, said Atterley was unable to continue trading amid the current inflationary environment.
"The business has recently been impacted by higher distribution and postage costs involved in sending out products to customers," he explained. "There has also been an increase in export and import costs due to Brexit and this has impacted on the viability of the business.
READ MORE: Atterley, Mike Welch's Scottish online fashion retail business, raises millions and sees sales boom
“Staffing costs have increased over the last few years and while investors have been supporting the company for some time, they feel they are unable to continue as the company is not making sufficient sales to be profitable.”
Mr Welch forged his reputation by building online tyre firm Blackcircles.com and selling it to Michelin in 2015 for £50 million. He relaunched Atterley in 2016 after its previous owner went into administration.
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