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In The Style will sell business for just £1.2 million to avoid bankruptcy

By Nagasunder in UK Business News, posted March 8, 2023

In The Style plans to sell the company for £1.2 million to avoid going bankrupt, just two years after being valued at more than £100 million.

The online fashion retailer was valued at £105 million when it floated in 2021 but has now agreed to be acquired by private equity investor Baaj Capital.

Adam Frisby, the company's founder and CEO, has agreed to take an equity stake in the new, which has been formed for the sale.

When the project is completed, he will become the company's CEO.

In December, the online fashion retailer launched a strategic review led by investment bank Lincoln International.

But it had "challenging" trading in January and February, which resulted in high levels of markdown and a decrease in wholesale demand.

The cash position of the retailer has decreased from £3.2 million at the end of December to around £900,000 at the end of February.

It said: “As a result of this expected reducing cash balance and the expectation that the trading environment will remain challenging in the near term, the board is of the opinion that, in the absence of raising further funds or completion, there would be no alternative other than the company and ITSFL to enter into administration or some other form of insolvency procedure in due course.”

In The Style chair Jim Sharp added: “Following a thorough review of different strategic options with our advisers and interactions with numerous parties, the independent directors have unanimously concluded that it is in the best interests of the company, its shareholders and its stakeholders to sell In The Style Fashion Limited to Bidco.

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“The independent directors, therefore, believe that under the new ownership structure – with Adam’s continued leadership and Baaj’s backing – the In The Style brand can continue to build on its potential whilst protecting the interests of the Group’s employees, suppliers and other stakeholders.”

Source: Retail Gazette