Fashion brand In the Style has launched a strategic review of the business after its chief executive stood down and the business swung to a loss.
In a flurry of notes to the City this morning, In the Style announced that chief executive Sam Perkins had informed the board of his decision to stand down, with founder and chief brand officer Adam Frisby returning in an interim capacity.
Perkins made the decision to stand down after In the Style reported a loss before tax of more than £3.1m for the six months ending on September 30, 2022.
The retailer also made an adjusted EBITDA loss of £1.8m for the period.
Group revenues also slumped, down 11% to £26.6m. Direct-to-consumer (DTC) sales remained broadly flat at £22.8m, while wholesale revenues slipped 45% to £3.7m.
The retailer said it had also appointed Lincoln International to help lead on a strategic review of the business as the board believed “there has been limited liquidity for In The Style’s shareholders for some time and that the current market capitalisation of the company does not properly reflect the underlying growth potential of the group, which may be better realised under an alternative ownership structure”.
The outcome of the review “may or may not result in a sale of the company or some or all of the group’s business and assets”.
Frisby said: “We have made important progress against our strategic priorities during the first six months of the year as we look to evolve our business and re-engineer our economic model.
“Highlights have included moving our warehouse operations, restructuring the way in which our teams work and, most encouragingly, launching [new brand] Fits to a very positive customer reception.
“Our DTC channel delivered a robust performance in the current economic environment and the Group’s core operational metrics have remained solid, with gains in engagement levels and the customer base that were made through the pandemic period being maintained, which provides a strong platform for future growth.
“We expect trading conditions to be challenging in the second half. We will continue to focus on cost control and profitability, and we look forward to delivering further strategic progress over the remainder of the financial year. We remain very excited about the long-term potential of the group.”
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