The Handbag Clinic, a specialist in leather goods restoration and luxury resale, has secured a significant capital injection to fuel its expansion in both the UK and international markets. The funds will also be used to enhance the company’s e-commerce platform. The exact amount of the investment has not been disclosed. The North East Venture Fund (NEVF), supported by the European Regional Development Fund and managed by Mercia Ventures, provided the capital injection. NEVF has previously invested in The Handbag Clinic, indicating its continued support for the company. Furthermore, an undisclosed private investor has also participated in the funding round to provide additional financial backing.
With a successful track record of 25 years, The Handbag Clinic reported exceptional growth in the past year. Its turnover reached £1.6 million in the previous financial year, and this figure is expected to nearly double to £3 million in the current year. The company’s e-commerce revenues have seen substantial growth as well, with average monthly sales increasing from £160,000 to £325,000 over a 12-month period. E-commerce traffic has risen by 53%, and gross revenue from e-commerce has surged by 97%. Total orders have also experienced a 57% increase.
Aside from its remarkable financial performance, The Handbag Clinic is distinguished for its unique approach to the circular economy. It is the sole UK platform that combines restoration with authentication and resale, offering a fully circular model. By providing services for buying, selling, restoring, and authenticating luxury items, the company contributes to the ongoing cycle of reuse and endeavors to reduce the impact of fashion waste.
The appointment of Tracy Lewis as the new Chair of The Handbag Clinic is a notable move for the company. Lewis is an award-winning entrepreneur and a globally recognized brand Chair with extensive expertise in the fashion, beauty, consumer, and retail sectors. She has previously led and supported prominent brands such as Wacoal, Eylure, Additional Lengths, and Bluebella, and has a proven track record of driving global growth. Lewis brings valuable expertise and insights to the company, complemented by her involvement in several successful business exits. Furthermore, Lewis is actively engaged in mentoring and developing teams to accelerate business growth.
In addition to the appointment of Tracy Lewis, The Handbag Clinic has taken on other key executives to strengthen its team. Will Chalk, formerly of Alphagenix, Mococo, and Noggin HQ, has been appointed as Chief Technical Officer, while John Cunningham, previously the Aftersales Manager for Chanel, has assumed the role of Customer Service & Operations Manager. These appointments, coupled with the previous NEVF investment, have enabled the company to double its team size to 55 employees in just over two years. The company plans to create an additional 10 positions next year, with a focus on finance, technology, marketing, and developing the next generation of artisans.
As sustainability continues to gain prominence in the luxury fashion industry, the resale market is witnessing significant growth. The Handbag Clinic seeks to establish itself as the leading global authority for pre-loved handbags. Ian Wilson of Mercia Ventures believes that the company’s reputation as a trusted aftercare service for luxury brands positions it well to capitalize on the growing demand for sustainable fashion. Wilson expects this latest investment to further support The Handbag Clinic’s expansion trajectory.
CEO and co-founder, Charlotte Staerck, expressed her enthusiasm regarding the company’s future prospects. Staerck believes that with the new capital injection and the addition of experienced board members, Tracy Lewis, Will Chalk, and John Cunningham, The Handbag Clinic can achieve its ambitious growth plans. She highly values the unmatched knowledge and expertise that each member brings, which will be instrumental in taking the business to the next level.
Useful 2 links relevant to the article:
1. The Handbag Clinic Official Website
2. Mercia Ventures Official Website
