Popular Australian dress platform collapses leaving lenders in the lurch

The company has gone into administration with some dress lenders saying they haven’t been paid thousands of dollars owed.

Australian dress hire company Designerex, which is known as the ‘Airbnb’ of designer dress hire, has gone into administration, with some lenders claiming they are owed thousands of dollars in payments.

A statement shared on social media on Thursday said the company made the “difficult but necessary” decision to appoint an administrator “due to a legal dispute with a technology provider”.

“This step allows us to reassess our position, minimise further disruption caused by this provider issue, and explore the best way forward for you - our customers, as well as our investors and stakeholders.”

The company, which was founded in 2016 by Sydney couple Kirsten Kore and Costa Koulis, said that it is working towards paying any remaining dress suppliers. It will also be refunding customers in full and further bookings have been paused on the website.

Bookings have now been paused and customers are being refunded.

Last month, a number of lenders claimed they were owed thousands of dollars from bookings, including one woman who told the Daily Mail she is awaiting $4,000.

The administrator told Business News Australia, “We intend to commence a campaign to market the business, whether for sale to a third party or for a restructure of the company as part of the administration process.

“We have already received expressions of interest in acquiring the platform and customer database.”

Sydney couple Kirsten Kore and Costa Koulis founded the business in 2016.

The award-winning company had over 44,000 dress listings from both individuals and designer dress hire companies, and had recently expanded its operations to the US.

It is currently in a legal dispute with Adelaide-based app developer PixelForce.

Ms Kore developed the idea for the business after hiring a designer dress from a woman on Facebook for an event. She told news.com.au in 2019 that the company initially sourced dress lenders through Instagram and Facebook and promoted their platform as a way to earn money from their expensive garments.