LabelSneak secures North West Fund backing

AN online men’s fashion business, backed by former rugby union player Austin Healey, has received a £525,000 investment from The North West Fund for Venture Capital, managed by Enterprise Ventures (EV).

Founded in 2011 by Austin’s school friend Ade Shannon, LabelSneak works with fashion and sportswear brands to buy excess stock which is then sold online.

LabelSneak targets men aged 18 to 36 and offers heavy discounts of up to 80%. It plans to use the investment to further grow the business.

The business started out as a pilot project to sell 2,500 polo shirts on E-bay. They sold out in three hours and it now has over 50,000 registered members. It has recently moved into an 8,000 sq ft warehouse in Bromborough, Wirral.

Mr Shannon is an IT specialist who has is currently working with IBM on a new e-commerce platform within the business.

He said: “While there are some very successful designer outlet sites, LabelSneak is different in targeting brand-aware men. We are continuing to expand the variety of products we offer by negotiating arrangements with different brand owners. Our ultimate aim is to become the preferred clearance partner for the world’s leading menswear brands.”

Will Clark, investment director with EV, said: “Ade is an impressive chief executive who has built a team with strong brand connections and product knowledge. They have not only developed a unique concept but also an innovative business model, in terms of the way they buy and manage stock.

“The funding will allow them to boost their marketing and further develop the business through the development of an innovative web platform in conjunction with IBM.”

The North West Fund is financed by the European Regional Development Fund and the European Investment Bank.