An online business focused on the resale of designer children’s and women’s clothing has thrown in the towel. Based in Newport, South Wales Loopster was launched in 2017 and in 2020 secured a seed funding round of £500,000 which included a £250,000 equity investment from the government-funded Development Bank of Wales. Investors included Jim Lewcock’s Blue14.
Loopster had sold some 12,000 items since its launch and had ambitions to accelerate its growth. It had sought to raise a further £500,000 via Crowdcube but failed to attract sufficient interest, closing at £400,000.
In a statement, the development bank said: “In June 2020, the Development Bank of Wales made a six-figure seed equity investment into Loopster alongside a number of business angels. The investment was to support the development of its platform to resell second-hand clothes, extending the life of fashion garments and reducing their environmental impacts. A crowdfunding campaign to secure private investment to match further capital from the development bank failed to reach its target and as a result the business has entered voluntary liquidation. Any proceeds from the company administration will be distributed to the company’s creditors according to priority.”
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