BrandAlley sold through pre-pack administration

BrandAlley UK, the off-price online fashion and lifestyle retailer, has been sold through a pre-pack administration after financial pressure from weaker trading conditions and exceptional costs.

Kiri Holland and Danny Dartnaill of BDO were appointed joint administrators on 29 May and immediately completed a sale of the majority of the business and assets to BrandAlley International Limited, which the company described as an unconnected purchaser.

The transaction preserves trading continuity for customers, with the new owner expected to continue operating the BrandAlley platform and honour existing customer orders, returns and refunds.

BrandAlley’s collapse follows a period of pressure for online and discount retailers as inflation, softer discretionary spending and higher operating costs have weighed on margins. The company had recently instructed Interpath to explore sale options before the administration filing.

The business employed 163 people before the appointment. Of those, 88 employees transferred to the purchaser as part of the sale, while 15 were made redundant immediately. A further 60 employees have been retained temporarily to assist with the handover to the new owner.

BDO said the sale protected more than half of the company’s workforce while preserving customer fulfilment arrangements. The administrators will now deal with the remaining company estate, including creditor claims and any assets or liabilities not transferred as part of the pre-pack sale.