The fashion brand, In The Style, has been sold to Baaj Capital for £1.2 million.
- Following the sale, Adam Frisby, founder of In The Style, has stepped down from the board.
- Several non-executive directors also resigned, leaving a newly formed board.
- Shareholders approved the sale with a narrow margin in voting results.
- The company plans to rebrand as Itsum plc, reflecting its new status.
The prominent fashion brand, In The Style, has completed its sale to the UK-based private equity firm, Baaj Capital, in a transaction valued at £1.2 million. This strategic decision comes amid financial challenges that the company faced in the previous fiscal period.
Following the completion of this sale, Adam Frisby, the founder of In The Style, has stepped down from the existing board. Alongside him, non-executive directors Nancy Cruickshank, Adam Bellamy, and Matthew Scaife have also resigned. The newly constituted board will now include chairman Jim Sharp and chief financial officer Richard Monaghan, marking a significant shift in the company’s leadership.
Shareholders of In The Style voted to approve this transaction, with a close vote of 58.92% in favour versus 41.08% against. This support underscores the belief in a strategic restructuring under new management to navigate future challenges more effectively.
As part of the transaction, Mr. Frisby has agreed to take on an equity position in the newly formed ITS Holdings 2023 Limited (Bidco). He is also set to become the CEO of ITSFL, continuing his involvement albeit in a different capacity. Concurrently, the company is set to undergo a significant rebranding, changing its name to Itsum plc. This move aims to eliminate any potential confusion with the In The Style brand and to signify the company’s transformation into a cash shell devoid of an operating business.
In the months leading to the sale, In The Style faced substantial hurdles, including a profit warning in January, forecasting a loss exceeding £4 million. The company’s revenue had fallen by 22% in the three months ending December 2022. The initiation of the sale process in December 2022 arose as market capitalisation failed to accurately represent the group’s underlying growth potential.
The sale and subsequent restructuring intend to position the company towards stabilisation and future growth.
