In The Style Group PLC (AIM:ITS) announced a strategic review that could result in the sale of the company as it reported a loss for the six months to 30 September 2022.
The digital womenswear fashion brand said it believes there has been limited liquidity for shareholders for some time and that growth may be better realised under an alternative ownership structure.
As a result, the group said it launched a strategic review which could lead to a sale of the company or some or all of its assets. It stressed that it is not in talks with any potential offeror and has not been approached with regard to a possible offer.
It also announced that CEO Sam Perkins has informed the company of his decision to step down from his role on 31 December 2022, with founder and chief brand officer Adam Frisby taking over on an interim basis.
In a separate statement, In The Style reported a pre-tax loss of £3.1mln for the first half, compared to a profit of £890,000 the year before.
Direct-to-consumer sales remained largely flat, it said, while wholesale revenue nosedived 45% to £3.7mln in part due to “mutually agreed cessation of the in-store trial with one partner”.
However, the group kept its forecast for full-year adjusted underlying earnings (EBITDA) unchanged.
"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,” said Frisby.