In The Style (ITS) Faces Workforce Reduction Amid Financial Challenges
In a significant move reflecting the current struggles in the retail sector, In The Style (ITS), a fast-fashion retailer based in Manchester, has announced a reduction in its workforce. This decision comes as the company prepares for its anticipated return to the London Stock Exchange, amid challenging sales figures.
For the fiscal year ending March 31, 2024, In The Style reported a pre-tax loss of £2.6 million. While this marks an improvement from the previous year’s loss of £7.7 million, the company’s revenue has seen a steep decline. Total revenue fell to £30.4 million, a notable drop from £45.9 million in the prior year and £57.3 million in 2022.
The decline in sales was not limited to one market; rather, it was felt across all regions where the brand operates. In the UK, revenue decreased from £42.7 million to £29 million. European sales also suffered, dropping from £2.7 million to £1.2 million, while revenue from international markets plummeted from £430,000 to £178,000.
In response to these financial challenges, In The Style has reduced its workforce from 179 employees to 140. The company cited a strategic shift towards streamlining operations, which includes investments in automation and the elimination of redundancies as part of their restructuring efforts.
This announcement follows the departure of the brand’s founder, Adam Frisby, who originally launched In The Style in 2013. Frisby had a tumultuous leadership journey, having stepped down as CEO in 2022, briefly returning later that year, and ultimately leaving the business entirely in December 2023. He has stated that he has “entirely left” the business and relinquished all shares.
Amid these changes, In The Style has been in negotiations with Iconic Labs, a London-listed company, regarding a potential reverse takeover. Discussions have been ongoing since March, with Iconic Labs having suspended trading of its shares in February. The proposed acquisition aims to directly purchase ITSFL, the operating company of In The Style.
The board of In The Style described the past year as one of “realignment,” emphasizing the company’s focus on improving margins and operational efficiency, despite the backdrop of declining sales. A statement from the board highlighted that “significant time investment has been made into our business intelligence to support robust trading decisions.”
As the company works through these challenges, Iconic Labs has confirmed that it is currently conducting due diligence to finalize the acquisition and navigate the process of readmission to the London Stock Exchange.
With the retail landscape continuously evolving, the actions taken by In The Style highlight the pressures faced by fast-fashion retailers in today’s market. The combination of declining sales and workforce reductions poses significant challenges, but the company’s strategic efforts to streamline operations and improve financial health may provide a pathway toward recovery.
As the situation develops, stakeholders will be keenly watching how these changes impact In The Style’s future prospects and its anticipated return to the London Stock Exchange.
