Alexa Chung’s business suffered a loss of more than £11million before she decided to shut it down as her fashion website is set to close at midnight.
The 38-year-old designer has revealed she will be shutting down her eponymous label Alpha Charlie, which she launched in May 2017, earlier this month, with Thursday marking its last day of operation.
And new accounts for the company reveal that its losses have increased by £1.3m to over £11m during the Covid-19 pandemic, in the 12 months to March 31, 2021.
Business: Alexa Chung said she is closing her Alpha Charlie brand, which she launched in May 2017, this month with Thursday marking her last day (pictured: Alexa wearing AC clothes)
Corporate cash reserves have also halved to less than £120,000 in the worst months of lockdown last year.
Alexa’s business, which employs 17 people, used the furlough scheme to claim up to £40,000 to pay certain employees over four months of 2021.
The fashion company has also taken out a government-backed £50,000 Bounce Back loan.
A company report said: “The directors reviewed current and developing issues with the retail environment and the projected return on any future investment.
Losses: And the company’s accounts reveal its losses rose from £1.3million to over £11million during the Covid-19 pandemic, in the 12 months to March 31, 2021
Finances: Alexa’s company, which employs 17 people, used the furlough scheme to claim up to £40,000 to pay some employees over four months (pictured: Alexa wearing AC clothes)
“As such, the directors have decided to pause the operations of the business in order to review strategy and assess the future of the business.
“The business will continue to operate to facilitate current royalty agreements and other opportunities that may arise.”
“The business has sufficient working capital to ensure that all debts will be serviced as they fall.”
Since launching her fashion line in 2017, Alexa has collaborated with Barbour and featured the brand twice at London Fashion Week.
But the company was struggling to turn a profit and had sought numerous rounds of investment, with Alexa announcing it was winding down operations earlier this month.
Tribute: Taking to her Instagram Stories on the brand’s last day of operation, Alexa reflected on her fashion label’s accomplishments as she thanked her team for their “incredible talent”.
Her fashion site ALEXACHUNG will close at midnight, according to the brand’s Instagram account.
Taking to her Instagram Stories on Thursday, Alexa also reflected on her fashion brand’s accomplishments, which saw Jennifer Lawrence wearing one of her coats in the movie Don’t Look Up.
The likes of Selena Gomez, Kendall Jenner, Dakota Fanning and Donald Trump’s wife, Melania, have worn clothes from the brand.
After sharing snaps from the brand’s history, she said in a touching caption, “Thank you to the amazing team at AC for your incredible talent and support. We will miss our messy office.
Previously announcing the closure of the brand, the model said: “During what has been a tumultuous time for independent businesses in retail, I have made the very difficult decision to end Alexa Chung’s operations. “
End: Announcing the closure of the brand, Alexa said it was an ‘honour’ to be able to create her ‘dream wardrobe’ as she described running the business as ‘rewarding’ but ‘challenging’ .
She added: “I am immensely proud of everything we have achieved. It was the most amazing experience and I enjoyed learning as much as I did.
In a lengthy Instagram post, she added, “I’d like to share the news that for the past few months I’ve been phasing out operations at ALEXACHUNG, the fashion line I founded in 2017.
“It was more than an honor to be able to create my dream wardrobe, and I want to thank our wonderful customers for the love you sent us – you have great taste.”
“The experience of starting and running my own business has been rewarding and often joyful, but the past two years have been tough for small independent businesses and ours is no exception.
Loved-up: Elsewhere, Alexa’s love life appears to be thriving as she is reportedly living with boyfriend Orson Fry in London (pictured in 2019)
“The decision to close was not taken lightly, not least because I am so grateful for the passion and creativity that the ALEXACHUNG team brought with them every day and the trust that all people involved had in this business. I am so proud of the company we have become.
“Needless to say, my enthusiasm for fashion remains intact, and with that, I thought I’d showcase some of my favorite things we’ve created over the years to celebrate all that we’ve achieved!”
Elsewhere, Alexa’s love life appears to be thriving as she is reportedly living with her boyfriend Orson Fry in London.
The low-key couple are believed to have been together since 2019, with Orson, who is heir to Fry’s chocolate dynasty, reportedly moving in with Alexa.