Mon Purse finds new buyers after COVID collapse
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Collapsed handbag retailer Mon Purse has been bought out of administration by a bevy of former investors and private equity firms, with plans to relaunch it as a purely online retailer.
Silicon Valley-based private equity firm Partners for Growth (PFG) and local turnaround firm Olvera Advisors announced on Monday they had acquired the assets of Mon Purse following the collapse of the custom fashion company in December last year.
A customer in Mon Purse Boutique in Paddington. The company entered administration in December.Credit:Edwina Pickles
Mon Purse, which was founded by entrepreneur Lana Hopkins in 2014, fell into administration in December following COVID-related supply chain issues.
The retailer allows buyers to design and monogram their own leather bags and was a popular startup around 2016, even striking deals with British and US fashion houses Bloomingdale’s and Selfridges.
Ms Hopkins is no longer involved with the business, having left in 2018. The business is now run by its sole director, former chief operating officer Andrew Shub.
The company’s new owners said on Monday the closure of the business’ physical stores during the pandemic significantly impacted sales and led to its collapse. Mon Purse operated a number of concessions in Myer and also had two standalone boutique stores.
Creditor documents also show the business attempted to raise fresh capital from investors in early 2020 but was unable to raise enough to continue trading.
However, PFG and Olvera have managed to lock in support from a number of Mon Purse’s initial investors to support the restructure of the business, which the firms hope will be completed this year.
“We are investing in revitalisation of the brand bringing in new capital and key strategic partners that will focus on the Mon Purse e-commerce platform,” Damien Hodgkinson, principal at Olvera Capital said.
“Our new strategic investors bring key skills in production, design and delivery with the new range to launch for Autumn/Winter 2021.”
“PFG looks forward to continuing to work with Mon Purse and we are pleased that new investors will join this financing as we continue to support the business,” Jason Georgatos, PFG’s managing director said.
PFG is also a secured creditor of Mon Purse’s, owed over $2 million after financing the company’s growth in 2017. Other prominent backers who have supported the company include Catch founder Gabby Leibovich, Airtasker co-founder Jonathan Lui and Mad Paws chief executive Justus Hammer.
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Dominic Powell writes about the retail industry for the Sydney Morning Herald and The Age.