Amsterdam-based The Next Closet, a prominent peer-to-peer marketplace for secondhand designer clothing and accessories, has been declared bankrupt by an Amsterdam court.
The specific reasons for the filing remain unclear, but intense competition in the fashion resale market, leading to razor-thin profit margins, has been cited as a primary cause of the company’s financial difficulties.
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The Rise and Fall of a Fashion Resale Innovator
Founded by entrepreneurs Lieke Pijpers and Thalita van Ogtrop, The Next Closet emerged as Holland’s pioneering fashion resale platform, connecting individual women’s wardrobes and vintage boutiques across the Benelux region. Notable for promoting sustainability, Pijpers had described the startup as a green tech company aimed at making the fashion industry more sustainable, recognizing the textile industry as one of the world’s most polluting.
Sustainable Vision Meets Market Realities
Despite their ambitious vision, The Next Closet struggled to maintain financial viability in a fiercely competitive market. The platform, which allowed users to follow each other’s closets and share items on social media, had raised €3M in growth capital back in September 2021 from investors like 4impact and the Borski Fund. However, the additional funds were not enough to prevent the eventual insolvency, reflecting the challenging dynamics of the fashion resale sector.
