goal is a fashion company founded in the USA in 2015 by businesswoman Marleen Vogelaar. With the company she wanted to make the clothing industry more sustainable. Via Ziel’s platform, fashion brands could start manufacturing their clothing in small editions.
By producing the clothing as locally as possible and making it only when it is ordered, waste and pollution caused by transport can be prevented.
Million dollar investment
Last year, the founder managed a capital injection of 4 million euros from three investors. The Growth Fund, the Borski Fund and the German Purpose Ventures were completely satisfied with the company.
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“Soul has the solution for sustainability of the clothing industry; a globally unique tech platform that makes the on-demand and local production of clothing accessible and affordable,” the investors wrote in a press release.
In it, Vogelaar, who previously became known as co-founder of the successful 3D printing company Shapeways, was praised for her ‘excellent leadership‘.
Clothing factory in Groningen
The Dutch subsidiary of Ziel would invest the fresh millions in, among other things, the construction of ‘Europe’s first on-demand clothing factory’ in Groningen. Last May there seemed to be a interview with Vogelaar in a podcast by, among others, startup ambassador Prince Constantijn van Oranje.
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Now, a year and a half after the capital injection, the company appears to be on the rocks. According to the insolvency register, Ziel NL was granted a postponement of payment at the end of June. Attempts to avert bankruptcy have failed. It was declared bankrupt at the beginning of this month.
Causes of bankruptcy
According to curator René Luinstra, the bankruptcy is ‘partly corona-related’. Ziel’s factory in the US would have had to close as a result of the corona pandemic. In order to be able to continue producing, she would have wanted to switch to making mouth caps.
“But this turned out to be a lengthy process in which the plaintiff had to be met by the American government. Nothing came of it,” said Luinstra.
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Money to the US
In that period, part of the fresh investment money went to the US, according to the trustee in the Netherlands. “The investors would transfer their millions in different tranches. The first 2.2 million was actually paid. But when it turned out that some of that money had gone to the US, they demanded that it come back.”
Because the American parent company could not provide this in the short term, the investors turned off the money tap. In addition, according to the bankruptcy trustee, Ziel also did not reach the so-called ‘milestones’, the criteria agreed for subsequent payments.
Liquidity issues
“Because the investors stopped paying, the company ran into liquidity problems. For example, the salaries could no longer be paid,” explains the bankruptcy trustee.
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Not all the money went to the US. Part of the investment millions was actually used to develop a technology platform. “That platform was just before the test phase,” says Luinstra.
Restart
The trustee considers there is a good chance that this intellectual property can be resold and further developed. “There is something in this company, it would be a shame if the plug was pulled here.”
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Investment Manager Christan Bout of the Growth Fund does not mean exactly how much the regional fund ultimately invested in the bankrupt company. “Of the three investors, we were the largest.”
public money
He also blames the bankruptcy “for the most part on corona”, and confirms that money disappeared to America. He cannot say yet whether the Growth Fund, which invests public money to strengthen the economy of the earthquake area in Groningen, will try to recover that money.
“We still have to determine our position internally on this, partly in consultation with the Economic Board Groningen and the curator.” According to Bout, the Groeifonds is not involved in talks about a restart for the time being, because the chance that the company will remain in Groningen is small.
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