Bag Borrow And Steal

Avelle bags its new name in favor of the old one

It’s out with the new and in with the old for Avelle Inc. this week. The company is going back to its original—and best-known— name: Bag Borrow or Steal.

Launched in 2004, Bag Borrow or Steal, No. 439 in the Internet Retailer Top 500 Guide , offers the rental of upscale accessories, including designer handbags, jewelry, watches and sunglasses, via its web site BagBorroworSteal.com. Brands include Burberry, Chanel, Chloe, Coach, Fendi, Gucci, Louis Vuitton, Prada and Tom Ford.

The name change is in response to customer preference, says CEO Russ Blain. “A few years ago the company felt it had outgrown the name Bag Borrow or Steal,” he says. “However, ‘fashionistas’ and customers never stopped calling us Bag Borrow or Steal, so we listened and changed our name.”

The company also announced the closing of a new round of financing , raising up to $4 million from a group of investors led by Kuwait Holding Co. and the Atelier Fund, both of which are shareholders.

“This is a monumental time for Bag Borrow or Steal,” Blain says. “We have spent the last six months successfully fine-tuning our business model. This renewed focus on our brand, as well as our new capital, allows us to put the company on a path for accelerated growth and success.”

The web-only company had 2010 sales of $16.0 million, up by 2% from $15.

Avelle reverts to Bag Borrow or Steal name, raises $4M - GeekWire

Avelle, the luxury handbag rental service, said today that it plans to reinstitute the name Bag Borrow or Steal. The Seattle company also announced $4 million in fresh funding from Kuwait Holding Company and the Atelier Fund.

The company adopted the Avelle name in 2008 after it began an expansion into other product lines such as jewelry. But the name didn’t really catch on, and most customers continued to refer to it as Bag Borrow or Steal.

“A few years ago the company felt it had outgrown the name Bag Borrow or Steal,” CEO Russ Blain said.  ”However, fashionistas and customers never stopped calling us Bag Borrow or Steal so we listened and changed our name.”

Blain took control of the company earlier this year after a management shakeup that included the departure of CEO Mike Smith; Vice President of Creative and Online Experience Becky Gebhardt; Vice President of Operations Dave Martine and others.

The company had previously been backed by Madrona Venture Group, but the Seattle venture firm is not listed in the press release as a backer in the current round.

Founded in 2004, Bag Borrow or Steal often gets described as the “Netflix for Handbags” since it allows customers to rent high-end bags from Chanel; Chloe; Coach; Fendi; Gucci and others.

The company had previously raised about $37 million.

UPDATE : Madrona Venture Group did not participate in the latest venture capital round.

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