In The Style: Fast-fashion brand saved after administration collapse
In The Style has been sold after collapsing into administration in a move which put hundreds of jobs at risk of being lost.
FTS Recovery had been appointed to oversee the administration process at the Manchester-based company before a deal with Alps Sourcing Limited was agreed.
It has now been confirmed that 87 jobs in the UK have been saved.
Marco Piacquadio, director FTS Recovery, 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. 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.”
In The Style was founded by Adam Frisby in 2013 and was previously listed on the London Stock Exchange’s AIM but was sold in a fire sale to Baaj Capital for just over £1m in March 2023.
At the end of 2024, In The Style had slashed jobs in a bid to stem its losses amid continuing falling sales.
The collapse into administration comes after it emerged last month that the business was on the verge of appointing FTS Recovery.
FTS Recovery and In The Style have been contacted for comment.
The fast-fashion retailer 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.
Its revenue was cut from £45.9m to £30.4m over the same period. The latest total was also down from the £57.3m it generated in 2022.
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 came 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 chief executive in December that year and left the role again 12 months later.
In The Style has been in talks with London-listed Iconic Labs over a reverse takeover since March 2024.
Iconic Labs, which is now 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 2024.