Manchester ecommerce retailer, In The Style, says it is considering putting itself up for sale, as its share price continues to fall.
The company released a statement to the Stock Market this morning saying that it had started a strategic review and that its Group CEO would be stepping down at the end of the month.
“The Board believes that 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.”
It has appointed Lincoln International to assist it with the review, which “may or may not result in a sale of the Company or some or all of the Group’s business and assets.”
In The Style added that it was “not in talks” with any potential suitor and hadn’t had any approaches.
Since its IPO in 2021, which valued the company at £105m, its share price has fallen 94%, to 13.25p.
This all comes despite figures showing In The Style had delivered a “record Black Friday Cyber Fortnight” with gross order values up 6% year-on-year.
It added that consumer sentiment remained uncertain so it expected its direct to consumer revenue would be broadly similar to the last financial year.
The ecommerce group added that wholesale “is likely to continue to be a challenge.”
Group CEO, Sam Perkins will step down at the end of the month, with founder, Adam Frisby, returning to the role on an interim basis.
“On behalf of the Board, I would like to place on record my thanks to Sam for his contributions during his time as the Group’s CEO. Adam is excited to return to the role of CEO at this important time. As the Group’s founder and major shareholder, Adam is well placed to lead the business and ensure it delivers its considerable potential,” stated Jim Sharp, Chair of In The Style.
