A sale of fashion firm In The Style is being considered while the retailer’s founder will return to head the firm next year.
Investment bankers at Lincoln International have been hired to assist with a strategic review of the firm, which may result in a sale of the firm or some of its assets.
The group booked a loss before tax of £3.1m in interim results published on Thursday, admitting that “consumer sentiment remains uncertain”. It had posted a £0.9m profit in the comparable period of last year.
Shares dipped seven per cent in afternoon trading on Thursday.
Bosses also said they felt there had been “limited liquidity” for shareholders “for some time.”
The firm’s current market capitalisation does “not properly reflect the underlying growth potential of the group which may be better realised under an alternative ownership structure,” a statement on the London Stock Exchange said.
However, the London-listed retailer stressed it was not in talks with any suitors and had not been approached by any offers.
Sam Perkins will step down as CEO at the end of this year, paving the way for Adam Frisby, who founded the women’s-focused brand in 2013, to make a return on a temporary basis.
In The Style posted net sales of £57m in the year ended 31 March 2022.
Shares have fallen more than 85 per cent in the past year to date, after the retailer made its stock market debut on London’s AIM market in 2021.