// In The Style shareholders narrowly approve £1.2m deal to save the business from administration
// The group launched a strategic review in December which it said may or may not lead to the sale of the company or some of its assets
In The Style’s shareholders have narrowly approved its £1.2 million sale to a private equity firm in a bid to avoid going into administration.
The Salford-based fashion retailer‘s deal was approved by just under 60% of voters at a general meeting earlier today (Friday, March 24).
Over 41% of shareholders voted against the deal which was first announced at the start of this month.
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The company is set to dispose of its only operating company, In The Style Fashion, to private equity investor Baaj Capital LLP.
Founder and chief executive Adam Frisby has agreed to take an equity position as part of the deal in the newly established bidco formed for the purposes of the sale and he’ll also become chief executive of ITSFL on completion.
In The Style launched a strategic review back in December, led by investment bank Lincoln International, at the same time as Frisby returned as interim chief executive, replacing Sam Perkins.
READ MORE: In The Style: How it went from £100m IPO to the brink of bankruptcy…
However, it experienced “challenging” trading in January and February, which resulted in high levels of markdown and a reduction in wholesale demand.
The retailer’s cash position has fallen from £3.2m at the end of December to £900,000 at the end of February.
At the time, the company said “the outcome of the strategic review may or may not result in a sale of the company or some or all of the group’s business and assets”.
In The Style chair Jim Sharp said: “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.”
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