A North East company which spruces up luxury handbags is hoping to bag £2m in its second crowdfunding campaign to help it ramp up global growth.
The Handbag Clinic was first set up six years ago as a spin-off from the Furniture Clinic, a leather repair business launched by Ben Staerck and his father in Burnopfield, County Durham.
Since then it has become the star performer of the business and, under the guidance of Mr Staerck’s wife Charlotte, Handbag Clinic offers services including cleaning, repairing and restoring and also selling vintage bags.
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The company stocks items from designers such as Chanel, Mulberry and Louis Vuitton, with its popularity leading to the opening ofa standalone store in Newcastle, partnerships with Harrods and Harvey Nichols, and franchises in Monaco and the Middle East.
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Earlier this year it smashed its first crowdfunding campaign, doubling its target to raise more than £300,000 which it used to take on more staff and buy more designer handbags.
Now, the firm is embarking on a second equity capital raise, through a Mayfair based boutique corporate finance firm, with a target of £2m to support its global expansion programme and growth of its resale division, which is now widely recognised as one of the fastest growing businesses in fashion retail.
The funds will be used to build the brand, acquire more bags, streamline systems and recruitment more staff.
It will also fund expansion into new geographic markets, identified by the demand it has seen through its website handbagclinic.co.uk.
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Mr Staerck said: “Since completing our first raise earlier this year, we’ve met and exceeded our 12-month target within the first six months and should hit our second-year target before the year end.
“Never has there been such appetite for preowned luxury and our business model is uniquely positioned in that we can increase the value of a handbag by restoring it before reselling it, ensuring optimum return for sellers.
“The loudest noise in fashion right now is the sustainability movement and, with our scale, unrivalled craftsmanship and established reputation, we are primed to harness this and continue our rapid growth.”
The company currently sells around 90% of stock purchased each month so, having identified re-sale as a key area for growth, it is hoping to use cash it raises to buy more bags, having already grown the resale stock by 400% since last year.
Mrs Staerck said: “Preowned, or preloved as it’s been fondly renamed, has moved out of niche behaviour and into the mainstream.
“We live in an age of Instagram with consumers continually wanting to update their look – this has led to an even greater desire for more affordable options as well as a robust resale market.
“By reselling their preloved bags, an eco-conscious choice, they can do this guilt free.
“When you consider that the average woman amasses a haul of 111 handbags in her lifetime, that’s an unmined treasure trove and worthwhile side-hustle for women everywhere and we want to empower them to monetise this.”