Newcastle-based fashion rental firm Hirestreet, which has grown into Britain's largest rental platform since launching with just a handful of dresses, has been acquired by CTR Group in a deal of undisclosed value.
Hirestreet was founded eight years ago by Isabella West, who aimed to create a sustainable alternative to fast and disposable fashion. The digital platform lets users hire outfits for special events, holidays, race days and professional wear, instead of buying garments they may only wear occasionally.
From bridesmaids' dresses to thousands of weekly hires
West started the venture by renting out a small selection of her own dresses, including the bridesmaids' dresses from her own wedding. The business now hires out thousands of garments each week and partners with major high street names through its white label service Zoa Rental, offering subscription and single-hire options from retailers such as ASOS, Marks and Spencer, French Connection and Nobody's Child.
The acquisition by CTR Group, Britain's foremost circular economy and reverse logistics operator, places CTR's operational capacity behind Hirestreet's subscription rental model, the fastest-expanding segment of the operation.
Subscription model drives growth
West has previously highlighted that subscription services represent the predominant rental model in America, comprising over 90% of the market, with platforms such as Nuuly expanding to 500,000 subscribers and projected $700m revenue this year. Hirestreet has seen the same transformation in the UK, and since introducing its subscription service with ASOS in 2024, it now accounts for more than half the firm's turnover.
Subscribers hire five pieces a month for £75, using the service to update their day-to-day wardrobe rather than outfit themselves for a one-off event. West noted that rental is as much an operational business as a fashion one, with every item that leaves the warehouse needing to return, undergo inspection, cleaning, mending and restocking to a standard that most third-party logistics facilities were not designed to accommodate.
New facility and resale link
CTR has built a purpose-built facility for Hirestreet within its existing network, complete with repair, cleaning and steaming teams. This gives Hirestreet control of that operation for the first time, supported by the same infrastructure CTR uses to handle more than 1,500 tonnes of stock every week for clients including Amazon and Primark.
The acquisition also links rental directly to resale for the first time in the UK. Items will be hired through Hirestreet, then transferred into resale through Thrift+ before they display wear, keeping pieces in circulation for longer and extracting more value from every garment.
Financial terms of the deal have not been disclosed, but West said it provides Hirestreet with the scale and support it requires to advance the rental market in the UK. She said: "When I started Hirestreet, it was because buying a dress to wear once didn't make sense to me. Eight years on, our subscription service lets customers enjoy clothes that make them feel good, without the guilt of overspending or the commitment of ownership. They can try styles, keep what they love, and send back the rest."
"That's where the market is heading, and to meet that demand properly, we need to scale our operations and customer care alongside it. CTR has given us the tools and infrastructure we need to properly scale. It's a really exciting time for the business."
Mark FitzGerald, CEO of CTR Group, added: "Hirestreet is one of the strongest consumer brands in the circular economy, and it builds directly on what we started with Thrift+. Our strategy is to bring the leading D2C circular businesses together and give retailers a way to recover more value from their stock."
