UAE’s The Modist Announces its Closure in the Wake of the Global Coronavirus Crisis
The luxury fashion e-commerce platform announces its closure today, citing the global economic conditions - though sources speculate that the company had been financially unstable for some time now.
Focusing on modest, high end designer clothing, UAE’s The Modist had become a staple in the fashion retail scene since 2017. Today, however, founder Ghizlan Guenez announced the platform’s closure - despite raising $15 million in a series A round in 2018.
“It is with a heavy heart that we share with you that The Modist has permanently closed its virtual doors. After three incredible years of creating a global business and platform that empowers women, celebrates their choices and breaks stereotypes, we regret to inform you that the global crisis that has hit the world has left our young business vulnerable with no option but to cease operating,” explained a statement, posted on The Modist’s social media accounts.
Though the statement seems to allude to the current Coronavirus pandemic and its effects on global business, Arabian Business reports that sources close to The Modist team have revealed that the company has “been struggling financially for six months, having laid off a number of staff, while its former COO Lisa Bridgett left in March last year.”
The company was also slated to complete a Series B round early this year, after financial injections from the likes of FarFetch and Bvlgari, but failed to seal the deal.
