In The Style shareholders narrowly approve takeover
British fashion retailer In The Style will go ahead with its sales process after 58.92 percent of shareholders backed the move.
The retailer will sell its operating subsidiary, In The Style Fashion Limited (ITSFL), for a total cash consideration of 1.2 million pounds following the completion of a strategic review earlier this year.
The deal with UK-based private equity investor Baaj Capital was first announced earlier this month. Baaj Capital has previously invested in companies including Leading Labels, Lissom Shoes, and Fever International.
It came after In The Style lowered its full-year profit outlook back in January as its once meteoric rise was impacted by various factors including “market-wide cost-of-living pressures on consumer demand, higher levels of markdowns and a reduction in wholesale demand”.
The Manchester-based company reported a 22 percent drop in revenue in the three months to December 31, while direct-to-consumer (DTC) revenue fell 13 percent.
As part of its deal with Baaj Capital, In The Style founder Adam Frisby, who returned to the CEO position late last year, has agreed to take an equity position in the newly formed company ITS Holding 2023 Limited, established for the purpose of the sale.
The position is the equivalent of Frisby’s current holding in the company and will also see him become CEO of ITSFL on completion of the sale.
In The Style directors had recommended that shareholders approve the total cash sale, which would be payable on completion, after which non-executive directors Nancy Cruickshank, Adam Bellamy, and Matthew Scaife will step down from the board.
Additionally, ITSFL will change its name to Itsum to “to avoid any confusion with the In The Style brand and to reflect the company becoming a cash shell”.