VeloVixen, a premium cycling apparel brand for women based in the UK, has entered liquidation after “feeling the pinch” in recent months.
The company announced on their website that it has entered liquidation and stopped trading. VeloVixen, an online cycling community based close to Oxford, began operations in 2012 as a result of the success of the London Olympics.
Unfortunately, after 11 years, the brand has disappeared due to what co-founder Phil Bingham called “adverse forces” working against it. VeloVixen co-founder Phil Bingham says multitude of factors caused his brand to cease trading.
VeloVixen’s returns rose to new highs during Christmas period
According to Bingham, amid a challenging Christmas season, VeloVixen’s returns reached new heights. Additionally, he believes that since the peak of the global epidemic, the demand for cycling apparel has decreased.
Although it was difficult to sell anything recently that wasn’t absolutely necessary, he said, “I guess there was a bit of pent-up demand lingering from Covid.” “Consumer behaviour has also drastically changed. Returns rates above 25% for the first time; this has never happened before. In the beginning, it would range from 10% to 15%, and 15% was concerning.
David vs Goliath
Because of our modest size, it has always been kind of a David vs Goliath situation for us. There are people out there that constantly anticipate rapid delivery, free returns, and free postage. We had six individuals working with us at one point, so it probably seemed to the outside world that we had a much larger setup, he continued.
Bingham told CW that with the cost of living crisis affecting a large portion of the population, it was especially clear over the holiday season that consumers did not have the same amount of disposable income as they formerly did. Luxury goods are no longer seen as essential commodities due to rising prices across numerous sectors.
“I believe that customers have been adjusting to rising pricing in the short run. People currently do not have a lot of spare income, as is evident from all that is happening, according to Bingham. ‘Should I invest £100 on a decent riding jersey?’ you may be asking. Or do I charge that to my energy bill? Although buying a luxury cycling equipment is optional and understandable, it’s not necessarily the best time to do so.
VeloVixen admitted that certain consumers and suppliers stood to lose money in the initial announcement announcing the brand’s demise.
Bingham is devastated about the fallout from the liquidation
Bingham stated again in an interview with Cycling Weekly that he is “completely crap” about that aspect of the consequences of their collapse and its liquidation.
Of sure, some people may suffer financial losses as a result of this. “Some customers won’t be able to get their refunds repaid, and some suppliers will suffer,” he said. “Of course, we feel completely awful about that.”
It just hasn’t worked out that way. “We had plans that if the sales around Christmas had been anything like we had planned, we would have surely had the budget to be able to certainly compensate the customers.
Bingham said he hopes other parties interested in using the trademark in the future would keep the VeloVixen brand alive in some capacity.
The brand itself is really strong, therefore we’re in talks with one or two parties about assuming the name, he said. “There must be a place for it in some capacity, whether or not a larger company chooses to take it on. We’re willing to have conversations about it with anyone who contacts us.
This comes on the back of research that show that about 47 shops closing down per day in 2022
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.