1️⃣ A Sudden Corporate Shift
On a quiet Friday morning, Trendsales, once a beacon for recycled fashion in Denmark, made headlines. Mads Aarøe Mathiesen, the director, announced to Ekstra Bladet the complete layoff of all 79 employees. This drastic move comes after the acquisition by Lithuanian giant Vinted, known for its second-hand marketplace platform. "All employees now have a last working day with us," Mathiesen disclosed, setting a definitive end to the current chapter of Trendsales.
2️⃣ The Rise and Integration
Founded in 2002, Trendsales enjoyed a prominent position in Denmark's online retail of used clothing. The acquisition in March 2023 by Vinted, which entered the Danish market just months ago in September 2023, marks a significant shift. Vinted, achieving unicorn status in 2019 with a billion-dollar valuation, now controls what was Denmark's largest platform for trading recycled attire. However, the integration process appears rocky with unclear plans for Trendsales' operational future.
3️⃣ Financial Peaks and Troughs
The financial journey of Trendsales has been a rollercoaster. In 2022, the company reported revenues of approximately $10.5M (DKK 70M), with projections to top $15M (DKK 100M) in 2023. This comes after a profit of about $1.8M (DKK 12.2M) in 2021, marking its first profit after six years of losses. The following year, profits dipped significantly to around $225K (DKK 1.5M). The financial health of Trendsales has been tumultuous, reflecting the volatile nature of the fashion resale market.
4️⃣ Looking Ahead
As Trendsales staff clear their desks, the future of the platform remains in limbo. Mathiesen hinted at ongoing discussions with Vinted about a new direction for the platform, with announcements expected by summer 2024. The retail community watches eagerly, speculating whether Trendsales will continue to exist or if it will be fully absorbed by Vinted's broader European operations. "We are working on what the future platform should look like," Mathiesen commented, keeping stakeholders guessing.
Will Vinted keep Trendsales brand alive?
