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In The Style is reportedly on the brink of insolvency less than two years after it was sold to Baaj Capital for just over £1m, according to reports from Sky News.
According to Sky, FTS Recovery is being lined up to act as administrator to the company, which was founded by Adam Frisby in 2013 and was once valued at more than £100m.
One source reportedly told Sky that a pre-pack insolvency potentially involving Baaj Capital was one possible outcome from the process.
Frisby returned to the company on at least two occasions before announcing his latest departure last year. Baaj was on the brink of buying discount retail chain The Original Factory Shop, but was trumped by a rival offer from retail investor Modella Capital.
The fast fashion retailer has seen its financial performance deteriorate in recent years.
The company’s revenues fell from almost £46m to £30.4m for the year ended 31 March 2024, while UK sales were down from £42.7m to £29m over the same period.
The company also revealed that it slashed its headcount from 179 to 140 during the period.
It stated that it had taken “significant steps to reduce operational overhead by investing in automation, clear strategic priorities and the removal of duplication of tasks.”
However, the company was unable to return to profit, posting a loss-before-tax of £2.7m, following a loss of £7.7m in the previous year.
Retail Sector has approached Baaj Capital for comment.
