In The Style has been rescued from administration following its sale to Alps Sourcing Limited, saving 87 jobs in the UK.
The pre-pack sale of the fast fashion retailer was negotiated by administrators Marco Piacquadio and Alan Coleman of accounting firm FTS Recovery.
FTS Recovery director Piacquadio said: “The company’s balance sheet has been laden with significant debt for some time.
“That debt has led to issues with cash flow and had an impact on suppliers. Since being brought in to help, our focus has been to seek to rescue as many elements of the business as possible.”
He continued: “It is always difficult trying to achieve a rescue against the backdrop of a relatively high-profile matter, particularly where elements of the brand and goodwill are under daily scrutiny.
“We are really pleased to have secured this outcome and to have rescued so many jobs. It is hoped that this rescue will allow the new owners the platform to work again with key stakeholders in the future.
“This sale marks a turning point in the company’s fortunes and an opportunity to return it to a position of profitability and financial stability.”
Related Story
It comes after In The Style filed a notice of intention to appoint administrators in February, with a report by Sky News indicating that a pre-pack deal was a possibility.
In March 2023, the company, which was once valued at £100m, was sold to Baaj Capital for just over £1m.
The brand floated on London’s junior AIM market back in 2019.
However, the fashion retailer has struggled in recent years. The brand launched plans to cut jobs in December in efforts to battle against falling sales before its return to the London Stock Exchange.
Last month, the business also trimmed back its workforce as it teetered on the brink of collapse.
In The Style pulled in a pre-tax loss of £2.6m for the year to 31 March, compared to its £7.7m loss the year prior.
Click here to sign up to Retail Gazette‘s free daily email newsletter
