11. March 2013–
ChicChickClub, the online shoe retailer from company builder Team Europe (also a shareholder in VentureVillage), has been acquired by competitor JustFab. Both the ChicChickClub brand and independent business will be discontinued.
Founded in 2011, it wasn't long before warning signs were flagged for the eCommerce site: It struggled to find a CEO, taking over a year to hire a replacement after cofounder Nikolaus Meyden left the company. Just last December, Ebony Morczinek was announced as CEO – but it was too late to turn the course of the company. Now, Morczinek will work at JustFab and the rest of the ChicChickClub team has the choice of whether to join her.
Morzinek remained positive about the future of the eCommerce site despite joining only two months after five staff members (25 per cent of the team) were let go in October last year. She spoke optimistically about the future of ChicChickClub shortly after taking over, saying: "In 2013, we want to have over half a million (customers)."
Last year, the company changed its business plan after initially offering users a €49.95 per month subscription service for shoes, bags and accessories. The new model included shoes for sale from €19.95 – providing a lower profit margin for the company. ChicChickClub continues to offer a curated shopping experience for users, who can browse through a personalised showroom put together monthly by fashion stylists. The company remains tight-lipped on when the site will be closed for service and officially shut-down.
On the ChicChickClub website, Morczinek said: "In a few months we have managed to win almost 150,000 loyal customers. They will become part of the almost 10 million fans worldwide that count themselves as part of the JustFab community and will profit from the enormous fashion competence."
While numbers were not named, it is unlikely that any significant financial amount was paid for the company.
Image credit: Flickr user Luca Violetto