In The Style chooses to sell business for £1.2m instead of falling into administration

Online fashion retailer In The Style has decided to sell its business for just £1.2 million to avoid falling into administration.

The fast fashion firm, which was valued at £105 million when it floated on the London Stock Exchange (LSE) in 2021, has agreed for In The Style Fashion Limited (ITSFL) to be acquired by private equity investor Baaj Capital.

Founder and CEO Adam Frisby has agreed to take an equity position in the Bidco, which was formed for the purpose of the sale only.

Once the deal has been completed, he will become the chief executive.

The fast fashion brand has endured a difficult period, fuelled by increased competition from global brands such as Shein and a worsening economic outlook.

It launched a strategic review in December, which was led by investment bank Lincoln.

However, it experienced “challenging” trading in January and February, which resulted in high levels of markdown and a reduction in wholesale demand.

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Its cash position has fallen from £3.2 million at the end of the year to £900,000 at the end of February.

In a statement the company 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.”

Company 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.

“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.”



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