MANIERE DE VOIR BOSS Reece Wabara has revealed both Brexit and Covid-19 were responsible for his company losing millions of pounds this year.
Due to the pandemic and the changes caused by Britain’s decision to leave the EU, goods coming into the county have been under close inspection by HM Revenue & Customs, Wabara told The Times.
As a result of these close checks, there’s been massive delays in goods coming through the border.
And since De Voir’s manufacturing base is in China, the fashion brand falls into that category of items that need intense scrutiny.
But these delays weren’t for days or weeks, Wabara explains that they were waiting over 2 months for their goods to get into the country.
This caused De Voir to miss out on in excess of £2m in the second quarter of the year in sales.
Wabara explained: “It’s been a nightmare, Up to 60 to 70 per cent of our summer stock was held by [HM Revenue & Customs] for checks — which we’ve never had before — for eight to twelve weeks.
“Literally, they held our summer stock for a whole quarter,” which is why the company felt the substantial loss in the second quarter, Wabara added.
But luckily the 29-year-old was able to navigate his business through the storm and lead it back into profit with impressive sales figures.
Last month, the Birmingham native posted on Twitter that in just one week, De Voir had made a million pounds in revenue.
And he also said that he expects the business to bring in £40m this year, up from £23m’s last year.
However, the ex-footballer is counting his blessings as he knows if De Voir was a smaller business, the delays would’ve gone under.
He added: “Fortunately we were OK, but if this was another business that wasn’t profitable, it could have crippled them.”