News, Culture & Society

Alexa Chung’s business loses £1.5million in one year

Alexa Chung is seen as such a trend-setter that Marks & Spencer asked her to launch the High Street giant’s collection Archive By Alexa.

The 34-year-old model faces a struggle, however, to turn her own fashion company into a money-spinner. For I can reveal that her business, Alpha Charlie, lost almost £1.5 million last year.

The television personality-turned-style mogul ran up the debts in the company before it launched in May last year. Documents for Alpha Charlie — named after her initials — disclose that losses in the business went up from £75,000 to just over £1.5 million.

The 34-year-old model faces a struggle, however, to turn her own fashion company into a money-spinner. For I can reveal that her business, Alpha Charlie, lost almost £1.5 million last year

The accounts cover the year before launch, but mean the star and her backers have to sell huge quantities of her range, Alexachung, before Alpha Charlie can go into profit.

The company issued £3 million in shares to fund the company and now has a little more than £1.4 million left.

Shareholders include film producer Eric Fellner, his wife the former model Laura Bailey, property developer Anton Bilton and Lady Dunstone, wife of Carphone Warhouse co-founder Sir Charles. Alexa, left, is the biggest shareholder.

The television personality-turned-style mogul ran up the debts in the company before it launched in May last year

The television personality-turned-style mogul ran up the debts in the company before it launched in May last year

The company owes creditors more than £260,000, including a £25,000 tax bill and £52,000 to the entrepreneur Peter Dubens, who is another major shareholder.

Alexa, who split from Hollywood star Alexander Skarsgard last summer, launched her brand with 145 pieces and said: ‘I just wanted the freedom to make my own world, without someone else’s brand’s brief to stick to. I feel like I need to get it up and running while I’m still young enough to have the energy and in touch with pop culture enough to make something that is actually relevant to the audience today.’

The clothes line is being sold in stores such as Selfridges and many items are currently being sold at 40 per cent discount on her own website.

Comedian Noel Fielding observed last year: ‘Nobody wants a real job any more. Everyone wants to be Alexa Chung.’

But can they afford it?

 



Read more at DailyMail.co.uk



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