Premium young fashion indie Bagga Menswear has been put into liquidation owing nearly £150,000 following technical problems with its website and falling sales and rising overheads at the store in Chislehurst, Kent.
Overall Bagga owes £145,179 to its creditors, which include young fashion brands G-Star and Diesel, according to documents filed at Companies House.
Owner Dave Lomax said in a letter to creditors that the business was affected by technical issues with its transactional website. It was also hit by unnamed brands putting their prices up and over-distributing, by falling sales and increased competition, the letter said.
The company ceased trading about two weeks ago and has appointed Mark Levy of chartered accountant Berley as liquidator. Lomax confirmed the closure to Drapers but declined to comment.
Club 21 Distribution, the agent for Armani Jeans, is the biggest trade creditor with £12,887 outstanding. G-Star is owed £7,805, Nudie Jeans is owed £3,179, Fred Perry is owed £2,068, Diesel is owed £1,150 and Barbour is owed £1,547.
The business’s assets are estimated to be worth £25,454. Creditors are unlikely to receive any money directly but a number of brands said they were insured or had a clause which allows them to reclaim stock.
Chris Akrimi, sales manager at menswear agency D&A, which sold premium brands Mastrum and Hope & Glory to Bagga, said “a large investment was made in a new website which unfortunately forecast sales that did not materialise.”
Paul Morarji, owner of Hash Clothing, which supplied Bagga with young fashion brand Red Monkey, said: “Bagga was hit by too many stores stocking the same brands and prices going up.”