The founder of Brayola.com, Orti Hashay, created her company based on her innovative service that enables women around the globe to buy bras without needing a size chart. But it appears the Israeli entrepreneur might have reached the end of the line with her company.
Brayola recently filed for a court protection from their creditors and the Court Judge for the Tel Aviv District appointed two trustees for the lingerie company, Brayola. Ronan Ashkenazi, the chief financial advisor and Avi Abramovich, attorney who is not an employee of Brayola were placed in charge of Brayola and will act as trustees for the Mizrahi Tefahot Bank.
Mizrahi Tefahot Bank had sent a formal letter to Brayola requesting the payment of more than $2.3 million that they owe in loans. The Bank requested the loans be paid off with any collateral the company had at the moment. Besides this request, the Bank order told Brayola to sell off their business to help pay off the loan. The Bank explained to the court that the founder of Brayola had racked up a debt of more than $7.4 million with the Bank.
In 2011, Orit Hashay founded Brayola to help women find the perfect bra without having to get measured or following a confusing size chart. The website encouraged customers to fill out a brief questionnaire about what they consider to be the perfect bra, etc. Once all the data has been processed, it creates your very own personal bra shop, basing selections on previous customers’ preferences.
Within eight years, Brayola has created quite a database with more than 2.5 million women’s different bra preferences, etc. At the time of being created the actual concept was considered to be innovative, giving women an easy solution to finding hundreds of different bras at the touch of a finger and without needing a bra measurement.
Bras were considered to be one of the most difficult undergarments to sell online, since finding the ideal fit is a challenge without actually trying it on.
Delta was in the process of drawing up the papers to purchase Brayola but backed out at the last minute. The deal would have allowed them to pay off the debt to the Bank, along with the revenues but the stockholders wouldn’t got paid off in the deal.
In the past, two other companies had shown interest in purchasing the company, the Japanese online retailer wanted to buy their technology for $32 million but nothing ever got past a few email conversations. According to the founder of Brayola, even Victoria’s Secret at one point was interested in the company, but there is no proof of this at the moment.
Brayola tried to prove in the court that they own intelligence property worth almost $7 million but they want to sell the company as one asset instead of in pieces, because it would be worth more together. But because of privacy laws within Israel and the United States it might be difficult to sell off 2.5 million dollars of private data, as the company is entirely based on collecting this confidential information.
At the moment, Brayola has only $692,000 in cash in merchandise and an estimated $17.5 tax loss. Brayola needed to bring in more than $3 million monthly but were barely scraping by on $1.7 million in sales. Looks like Brayola might be facing bankruptcy and will be a replaced by a newer and better technology soon for shopping for a bra.