SoftBank-backed clothing rental firm Style Theory shuts down

Style Theory co-founders Raena Lim (left) and Chris Halim / Photo credit: Style Theory

Style Theory, a subscription-based fashion rental firm based in Singapore, has shut down because of rising costs and withdrawal of “key” investors.

The company ended its subscription service in the city-state as of September 30. This followed the closure of its Indonesia business in June.

Founded in 2016, Style Theory rented out clothing through its app. It gave customers access to over 60,000 designer styles for as low as S$89 (US$69) per month.

Second Edit, a luxury bag and women’s wear platform under Style Theory, also closed up shop.

In an announcement, Style Theory said it will not be refunding current subscribers. It also asked those holding on to rented-out clothes to keep the items for the time being, “until further notice.”

The firm also advised users to return rented-out bags, as they are either company-owned or consigned by individual owners and are therefore subject to ownership and consignment agreements.

Consignors will also not receive any pending payouts, as Style Theory announced that it will be placed into liquidation.

However, the company said consignors can file a claim with the proposed liquidators at an upcoming creditors’ meeting. The proposed liquidators will also be named during the meeting.

Style Theory was backed by investors like Alpha JWC Ventures, Quest Ventures, The Paradise Group, and SoftBank Ventures Asia. It last raised funding in 2019, securing US$15 million in a series B round.

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Currency converted from Singapore dollar to US dollar: US$1 = S$1.29.