Blue Diamond webshop declares bankruptcy with massive debt

Blue Diamond, an Alphen aan den Rijn-based webshop operating under brands such as Shapes You, Snaxy, Feganza, and Angelic Life, has declared bankruptcy leaving behind significant debt. Despite achieving an annual turnover of over one million euros following its 2022 launch, the company's revenue collapsed shortly thereafter.

A bankruptcy report reveals that the Dutch Tax and Customs Administration (Belastingdienst) is the primary creditor, with an outstanding claim of over 623,000 euros. Other creditors are owed approximately 137,000 euros. At the time of the bankruptcy filing, the company possessed almost no assets; the curator reported finding no stock, no business equipment, and less than 800 euros in the bank account.

The company's downfall is attributed to a transition from holding its own inventory in Bodegraven to a dropshipping model to reduce costs. This shift resulted in high social media advertising expenses, delivery issues, and a high volume of customer returns. Additionally, cashback promotions further strained margins, leading to rapid debt accumulation.