In The Style Founder finalises move from former business following completion of sale for £1.2m

In The Style's Founder Adam Frisby has stepped down from its current board following today's completion of the sale to private equity firm Baaj Capital for just £1.2 million.

As reported on Friday, In The Style narrowly received approval from shareholders to sell its only operating subsidiary in a deal that will lead to the fashion brand's delisting from AIM and avoid placing the business into administration.

The resignations of each of Adam Frisby, Nancy Cruickshank, Adam Bellamy and Matthew Scaife have also now become effective. The board now comprises of only Jim Sharp and Richard Monaghan.

Shareholders voted 58.92% to 41.08% to approve the sale. The offer by Baaj, which was revealed earlier this month, included a pre-condition that In The Style founder and CEO Adam Frisby agrees to take an equity position in ITS Holdings 2023 Limited ('Bidco') – a newly established company formed for the purposes of the sale – equivalent to his current holding in the company.

Now that the sale has been completed, the AIM-listed In The Style entity will change its name to Itsum plc to avoid confusion with the In The Style brand. Itsum will become a cash shell and will cease to own, control or conduct all of the company's existing trading business.

Adam Frisby, formally of In The Style.

As set out previously, the company intends, as soon as practicable, to implement a members voluntary liquidation (MVL) in order to distribute the net proceeds of the Sale received by it. However, while these net proceeds are expected to be approximately £500,000, the company will need to deduct the additional costs and expenses associated with the MVL, as well as the general administrative costs of now having to remain an AIM-quoted company.

As the Company does not intend to enter into a Rule 14 Transaction, the company's ordinary shares will be suspended from trading on AIM six months (27 September 2023). Admission to trading on AIM will be cancelled six months from the date of suspension.

A further announcement confirming the proposed change of name and details of the company's new website will be made in due course, according to published documents. The company will continue to operate as usual for the foreseeable future.

What lead to In The Style's fall?

In The Style announced its strategic review in December and revealed in a trading update in January that performance had deteriorated. The board said it expected revenue for the full year to 31 March 2023 to be in the region of £46 million.

The business was floated on AIM in 2021 with a value of £105 million but its share price has been on a downward trajectory since March last year when shares were trading at around 90p.

No potential bidder that came forward during the strategic review had offered to purchase the entire company but Baaj, parent of menswear retailer Blue Inc among others, made its offer on the pre-condition that Frisby also invested and stayed with the business. Baaj, a family office, prefers to invest in businesses where it works with the current owners and management teams.