The new owner of Ascension, formerly Adili, is confident the business can grow with a fresh start.

Investor Luke Heron, who bought the ethical etailer last week for £1 after it failed to raise sufficient working capital, de-listed it from AIM but will continue trading online and from its two shops.

He said: “The brand has great potential and can turn a corner.”

He said he will seek to stock more “exclusive” and higher-price point brands. He will also use synergies with one of his other investments, ethical baby business Green Baby, to help the group run more efficiently.

He added that there were no current plans to change management.