In The Style on verge of administration

In The Style is edging towards insolvency less than two years after the online fashion retailer was forced into a fire sale to a family office investor.

TS Recovery is being lined up to act as administrator to the business which was founded by Adam Frisby in 2013, Sky News reported.

One source told the outlet that a pre-pack insolvency potentially involving Baaj Capital was one possible outcome from the process.

In The Style, which was once valued at over £100m, was sold to Baaj Capital for just over £1m back in March 2023. It had floated on London’s junior AIM market in 2019.

The fast-fashion retailer has seen its financial performance deteriorate in recent years. Back in December it launched plans to cut jobs in a bid to battle against falling sales ahead of its return to the London Stock Exchange.

It reported a pre-tax loss of £2.6m for the year to 31 March, compared to its £7.7m loss recorded the year before.

Last month, reports emerged that Baaj was on the brink of buying discount retail chain The Original Factory Shop, but was beat out by rival offer retail investor Modella Capital.

Click here to sign up to Retail Gazette‘s free daily email newsletter