Acquisition of Luxe Collective by Fashionphile
Luxe Collective, a UK-based luxury resale company, has been acquired by the US-based platform Fashionphile. This move comes after Luxe Collective faced significant challenges following a warehouse break-in that led to its insolvency in May 2025.
The San Diego-based company, which had celebrity ambassadors such as Nicole Ritchie and Emma Roberts, will integrate Luxe Collective’s founders into its operations to launch a new Fashionphile UK arm. Co-founder Ben Gallagher expressed excitement about the opportunity to open a showroom in south-west London, marking what he calls a “new era” for luxury fashion.
The acquisition includes all intellectual property, customer databases, and social media channels of Luxe Collective. This means that the brand’s Instagram account, which boasts 650,000 followers, will be rebranded under Fashionphile’s umbrella.
Luxe Collective was founded in 2018 by brothers Ben and Joe Gallagher in their parents’ home. The duo gained attention after appearing on the BBC’s Dragons’ Den series in January 2024, where they secured a £100,000 investment from Steven Bartlett for 3% of the firm.
However, the company faced a major setback in July 2024 when its warehouse in Ormskirk, Lancashire, was broken into. The thieves stole half of the stock, valued at over £500,000. Despite efforts to recover, the police never found the culprits.
At the time, Ben Gallagher described the situation as one of the most painful experiences of his life, noting the extreme mental and physical toll it took on him.
The Gallagher brothers will lead the UK business, with Ben as director of brand marketing and Joe as director of operations. They aim to open a flagship store in south-west London soon, featuring a stockroom, showroom, and an authentication base. This will follow the model of Fashionphile’s large LA store, although security measures may include asking customers to show ID upon entry.
Ben Gallagher believes the luxury industry is currently experiencing a resurgence, citing the appointment of new creative directors at major brands like Dior and Chanel. He also highlighted the growing demand for pre-owned handbags.
Sarah Davis, founder and president of Fashionphile, emphasized that Luxe Collective was more than just a resale platform. She praised the community built by Ben and Joe, expressing hope that the partnership would help revive the brand’s essence on an international stage.
During the company’s collapse, Ben admitted that the emotional and mental strain affected his leadership and decision-making. However, he stated that the new company would return to its roots by paying 100% for its stock upfront, moving away from the consignment model.
The luxury industry is cautiously optimistic about the future, despite recent challenges. Sales have declined for even major players like LVMH, partly due to reduced consumer spending post-pandemic and uncertainty caused by geopolitical factors.
Deutsche Bank analysts suggested that there are reasons to be hopeful for 2026, citing improved consumer confidence, stable stock markets, and potential recovery in housing wealth.
Online resale platforms have been particularly hard-hit. LuxExperience recently announced 700 job cuts, while Yoox Net-a-Porter and MyTheresa also faced significant layoffs. Farfetch was rescued from bankruptcy by Coupang, and Matches Fashion was abandoned after being saved by Mike Ashley.
Despite these challenges, the acquisition of Luxe Collective by Fashionphile signals a renewed focus on the UK market, offering a fresh start for a brand that once captured the attention of luxury fashion enthusiasts.
