Shares of Salford-based fashion firm In The Style fell another 77% after it announced plans to sell its only operating subsidiary In The Style Fashion Limited (ITSFL) for £1.2 million to private family office Baaj Capital LLP and outlined proposals to delist its shares from AIM.
In The Style shares are now down 98% for the past 12 months.
The deal includes pre-conditions that In The Style founder Adam Frisby takes an equity position in ITS Holdings 2023 Limited, a newly established company formed for the sale, equivalent to his current holding in the company, and that he becomes CEO of ITSFL on completion of the sale.
The independent directors intend to recommend that shareholders approve the sale.
The company proposes to change its name to Itsum plc.
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.
“The independent dDirectors therefore believe that under the new ownership structure – with Adam’s continued leadership and Baaj’s backing – the In The Style brand can continue to build on its potential whilst protecting the interests of the group’s employees, suppliers and other stakeholders.”