Retail Pop Up Sook Shuts Up Store 

In an indication of simply how robust the UK funding surroundings is turning into, the modular retail house innovator Sook has gone from one of many UK’s startups to look at, to shuttering its enterprise, practically in a single day.

Posting on LinkedIn final week, Sook founder John Hoyle introduced with remorse that the enterprise would not be buying and selling.

“Despite the extraordinary efforts of our workforce, rising gross sales and reaching worldwide scale we had been unable to boost adequate funding to proceed within the present surroundings,” Hoyle acknowledged.

We might picked Sook out as a model to look at for 2024, following its profitable utility to the Startups 100, and its inclusion in our earlier Startups 100 checklist for 2023. But the sudden collapse of Sook’s enterprise reveals simply how a lot the excessive road is in dire bother. The vicious combo of an financial downturn, rising hire, painful enterprise power prices, and difficult enterprise charges have meant many new companies don’t dare dream of a bricks and mortar outlet.

In the meantime, an unfathomable variety of large UK manufacturers have gone into administration amid the crises, leaving excessive streets hollowed out throughout the land. Whereas Sook’s enterprise mannequin seemed like a welcome tonic for this robust surroundings, sadly the enterprise has come to hitch the very development it was trying to flip round.

Sook’s modular method not constructed to final?

The Sook mannequin sought to quietly redefine retail house in a post-pandemic world.

The enterprise supplied modular fit-outs for popup retailer areas and occasions. Industrial landlords with an unoccupied house may flip to Sook, which, in flip, helped companies launch pop-up occasions and in-store experiences with a seamless setup and versatile lease size.

“The connection between business landlords and occupiers is a damaged one because of the misalignment of expectations,” Hoyle advised us final 12 months. “Landlords are combating excessive vacancies, however providing conventional phrases, whereas occupiers demand flexibility.”

Amongst Sook’s pop-up house alumni are Depop’s primary international vendor, Danielle Mass, founding father of Remass. Danielle used a Sook retailer fit-out to join in particular person with over 3,000 shoppers.

By the top of final 12 months, Sook was providing retail items in London, Birmingham, Liverpool, and different UK locations. In October 2023, the enterprise launched an area within the Mall of Africa, South Africa, with a franchise settlement arrange for additional growth potential.

Sadly, all these growth plans now look set to complete. On the time of writing, the Sook web site was nonetheless dwell and with the looks of being open to new enterprise, however Hoyle’s LinkedIn message suggests this may not be the case for lengthy.

Hitting the rocks of funding

Sook’s early funding journey took the enterprise from preliminary seed funding, to crowdfunding, to angel funding, together with from Tobin Capital.

Nevertheless, to realize its development ambitions, the corporate had earmarked additional funding necessities, which didn’t materialise as 2024 started.

Entry to adequate capital continues to be one of many best challenges for the UK startups scene, and it’s a essential concern for companies searching for to scale up and realise their development ambitions.

Hoyle stays pleased with the Sook journey to this point, and in his LinkedIn submit, emphasises the strengths and capabilities of the Sook workforce.

“I’m so pleased with all that we achieved and extremely unhappy that we can’t proceed. Please help our workforce members as they seek for new roles.

“They’ve first hand expertise of disrupting the retail and actual property sectors throughout extremely difficult occasions. Thanks to everybody who supported us during the last 5 years.”