In The Style has seen its share price slump 5.3 per cent this morning, after the embattled fast fashion brand revealed that it was forced to sell its business to avoid administration.
The fast fashion retailer, which was once valued at £105m when it floated on the London Stock Exchange, said it has received a £1.2m offer from private equity firm Baaj Capital LLP for the brand.
As part of the conditions of the sale, founder Adam Frisby, will remain on the leadership board and become chief executive of the business upon completion of the deal.
Commenting on the sale, Jim Sharp, chair of the brand said that it is in the “best interests” of the company to sell In The Style Fashion to Bidco”.
He continued: “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.”
In The Style has struggled to keep its head above water over the past few years, with the group posting a pre-tax loss of £3.1m in the first six months to September 2022.
Its fall brings the durability of pure-play fast fashion brands into question as rival brands Missguided and I Saw It First have also collapsed into administration in the last few years.
The brands were snapped up by Mike Ashley’s Frasers Group in deals worth £20m and a shockingly low one pound after I Saw It First owed £13m to its shareholders following its collapse.