Reality Star’s Fashion Brand plunged into £3m Debt

It has been revealed that almost £3 million was owed by the fashion brand co-founded by reality star Seema Malhotra when it entered liquidation.

According to documents filed with Companies House, debts of over £2.8 million had been racked up by Manchester-based Dress Me Online, which traded as Forever Unique.

Forever Unique is now trading under a new operating company, Fashion Store Online Limited.

The fashion brand was co-founded by Seema Malhotra – who is a cast member on The Real Housewives of Cheshire – and her husband Sandeep.

But her husband was the only director.

Mr Malhotra is also the only director of Fashion Store Online Limited.

According to its most recently available accounts, Dress Me Online turned over £2.3 million in the year to December 2020.

The new statement of affairs has been filed with Companies House.

It shows that HSBC was among its largest creditors as well as China-based Guangzhou Pretty Fashion and Turkey-based Nova Sourcing USD.

HMRC was owed over £1.3 million when Dress Me Online entered liquidation.

Mr Malhotra was owed over £140,200 while Unique Collections, a Manchester company he is a director of, was also owed almost £577,300.

Amie Johnson and Yiannis Koumettou of Begbies Traynor were appointed as joint liquidators of Dress Me Online on April 4, 2023, “after all options had been explored to keep the business open”.

Insolvency director Amie Johnson said:

“We have successfully completed a sale of the company’s stock.

“In accordance with our statutory obligations, we are now focusing on our investigations into the company’s affairs and conduct of the company’s directors.

“If creditors have any concerns regarding the company’s affairs or directors conduct we would ask that they contact us with details.

“We will keep creditors updated with progress.”

In April, Ms Johnson said:

“Every option was explored but there was no choice but to enter the company into liquidation.”

“A combination of the economic climate, inflation and issues in recovering from the pandemic have resulted in these circumstances.”

The brand’s clothes have previously been worn by the likes of Holly Willoughby and Kate Middleton.

Forever Unique Limited had an estimated total deficiency of £2.822 million.

At the time, the company said the Covid-19 crisis negatively affected it and that the brand would now focus on selling directly to customers.