In The Style Group plc has agreed to sell itself to a family office for £1.2 million, avoiding administration.
The digital womenswear fashion brand, based in Salford, floated in London two years ago with a market value of £105m. Its market cap stands at around £745,000 today.
Following a strategic review, a bid from Baaj Capital LLP for its only operating subsidiary In The Style Fashion Limited was deemed to be the most plausible outcome.
In The Style uses influencers such as Stacey Solomon and Gemma Atkinson to promote its products.
“While the company has had positive engagement with several potentially interested parties, some of the parties made proposals that were not deemed by the board to be deliverable on an acceptable timescale. None of the proposals involved an offer for the whole company,” In The Style stated to the Stock Exchange.
It said the offer from Baaj “included a pre-condition that Adam Frisby agreed to take an equity position in ITS Holdings 2023 Limited, a newly established company formed for the purposes of the sale, equivalent to his current holding in the company and to also become chief executive officer of ITSFL on completion of the sale”.
Last month Frisby, who founded the company from his bedroom in 2013, won a High Court battle against businessman Paul Clements. The latter claimed he had come up with the concept and name for the company.
Non-executive directors Nancy Cruickshank, Adam Bellamy and Matthew Scaife will step down from the board on completion of the deal. The listed company, now a shell with no trading business, will change its name to Itsum plc and seek to de-list its shares from the junior AIM market.
“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,” said Jim Sharp, chair of In The Style.
“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.”