Online designer menswear outlet, LabelSneak has obtained a £525,000 investment to boost its marketing and help develop the business.
The etailer, which boasts former Rugby England player and Strictly Come Dancing star Austin Healey as an equity partner, received the investment from the North West Fund for Venture Capital and will use the capital to further grow the business after its launch last year.
Chief executive Ade Shannon is working with technology company IBM to develop a new e-commerce platform for the company, which has also just moved into a new 8,000 sq ft warehouse in Bromborough, Wirral.
LabelSneak started out as a store on eBay in 2011 and has since developed its own website with over 50,000 registered members. It targets 18 to 36 year olds and works with fashion and sportwear brands to snap up excess stock, which it sells on at up to 80% discount. Its first e-bay pilot saw 2,500 discounted designer polo shirts sell out in three hours.
Shannon said: “While there are some very successful designer outlet sites, LabelSneak is different in targeting brand-aware men. We are continuing to expand the variety of products we offer by negotiating arrangements with different brand owners. Our ultimate aim is to become the preferred clearance partner for the world’s leading menswear brands.”
Will Clark, investment director at EV, which manages The North West Fund for Venture Capital, called LabelSneak a “unique concept” with an “innovative business model”.
He continued: “The funding will allow them to boost their marketing and further develop the business through the development of an innovative web platform in conjunction with IBM.”