In The Style cuts job as sales continue to fall ahead of stock exchange return
In The Style slashed jobs in a bid to stem its losses amid continuing falling sales as its return to the London Stock Exchange edges nearer.
The Manchester-headquartered fast-fashion retailer has posted a pre-tax loss of £2.6m for the year to 31 March, 2024, down from the £7.7m loss it reported in the prior 12 months.
Newly-filed accounts with Companies House also show its revenue was cut from £45.9m to £30.4m over the same period. The latest total is also down from the £57.3m it generated in 2022.
In The Style’s UK revenue fell from £42.7m to £29m in the year, from £2.7m to £1.2m in the rest of Europe and from £430,000 to £178,000 in the rest of the world.
The company also reduced its headcount from 179 to 140 after taking “significant steps to reduce operational overhead by investing in automation, clear strategic priorities and the removal of duplication of task”.
The results come after founder Adam Frisby quit the brand in recent months.
Frisby set up the Manchester-based brand from his bedroom in 2013 and served as its chief executive for nine years before leaving the firm in January 2022.
But he returned as CEO in December that year and left the role again 12 months later.
The former boss has previously said he has “given up” all his shares in the firm and has “entirely left” the business.
In The Style (ITS) has been in talks with London-listed Iconic Labs over a reverse takeover since March.
Iconic Labs, which is headquartered in London, was established as Widecells Group in 2018 and was based in Manchester. The company suspended the trading of its shares at the end of February.
In The Style develops ‘relentless obsession’
A statement signed off by the board said: “[This financial year] was a year of realignment and resetting operating practices for In The Style with focus being given to creating robust unit economics on which to trade the business, right sizing of the overhead and developing efficiencies arising from the wider group integration.
“Significant time investment has been made into our business intelligence and reporting suite to surface the right data on which to make robust trading decisions.
“Through the shift in the focus of the business from top line sales to relentless obsession on net contribution margin, the business has been able to drive significant margin improvements despite a reduction in toppling sales.”
On the proposed reverse takeover, Iconic Labs said: “We are working with our advisers to undertake the due diligence necessary to complete the proposed acquisition.
“As the transaction will constitute a reverse takeover under the listing rules, our advisers are assisting us with the process of readmission to the official list and to trading on the main market of the London Stock Exchange.
“As a result of the due diligence to date, it is now proposed that Iconic will acquire ITSFL [In The Style’s operating company] directly from ITS 2023 [the holding company] and will not acquire ITS 2023.”