The Manchester-based fashion retailer ‘In The Style’ has entered into an agreement with Baaj Capital, a private equity firm, for a sale valued at £1.2m, as a measure to circumvent insolvency. The news comes after a turbulent year for the company, which floated in March 2021 with a market value of £105m, but has since seen its share price plummet by 95%.

In a statement released on March 7th, ‘In The Style’ (ITS) announced that it had received a deliverable offer from Baaj Capital for ITSFL (In The Style Fashion Ltd), which the company has accepted. As part of the deal, it is stipulated that founder Adam Frisby will acquire a stake in ITS Holdings 2023 Limited (Bidco), a newly-established company formed for the agreement. He shall also undertake the role of ITSFL’s Chief Executive Officer with the sale’s finalisation.

The strategic review for this sale began in December 2022, during which time various potential partners showed interest in the company. However, its board deemed no proposals “deliverable on an acceptable timescale”. It was also stated that none of the investors intended to acquire the whole company. Following the issuance of a profit warning in August 2021 which reported sales figures that failed to meet expectations, a review was undertaken. In October, the company disclosed that it was exploring the feasibility of a potential sale.

ITS, a business that has sustained the market for a decade, would face the prospect of administration without Baaj Capital’s offer. The private equity firm has a track record of acting as a lifeline for distressed companies, which suggests ‘In The Style’ shows potential for long-term growth.

The sale is also good news for ITS employees, who had been grappling with economic uncertainties. The company stated on record that it was indeed “a difficult period for all stakeholders” and that it was “pleased to have found a solution that secures the future of the business and protects jobs.”

The news has been welcomed by industry experts, who see it as a positive development for the UK fashion industry as a whole. In recent years, the sector has faced significant challenges, including the impact of Brexit and the COVID-19 pandemic, which have led to a decline in consumer confidence and spending.

Despite these concerns, the sale of In The Style to Baaj Capital is a significant development for the UK fashion industry, and one that is likely to be closely reviewed by investors and analysts alike. As the sector continues to navigate the challenges of a post-pandemic world, the ability of companies like In The Style to adapt and innovate will be crucial to their success.