The former owner of fashion label In The Style is to be wound up after failing to secure a takeover deal.
Itsarm plc has been seeking a deal since July 2023 when the boss of Allwyn, which took over the licence to run the National Lottery on February 1 this year, handed it a lifeline.
However, the company’s shares were suspended from trading on AIM in September last year after a deal was not agreed.
At the time, Itsarm said it was exploring “two opportunities”, one of which included a “consumer/retail-focused” business, which is at an “early stage”.
But since then no deal has been agreed upon, and it has now been confirmed that the company will be delisted from AIM and wound up.
Itsarm became a cash shell when it sold its only operating company, In The Style, for £1.2m in a bid to avoid entering administration.
In The Style founder Adam Frisby is the largest single shareholder in Itsarm, holding over 23 per cent. Other major shareholders include Chelverton, Paul Masters, Afzal Valli, Andrew Batchelor, Alastair Bruce, Octopus and Canaccord.
In a statement issued to the London Stock Exchange, Itsarm said: “Unfortunately it has not been possible to conclude a qualifying AIM Rule 14 (reverse takeover) transaction.
“Upon the cancellation becoming effective, Zeus Capital will cease to be nominated adviser to the company pursuant to the AIM Rules, however, the company will remain subject to the takeover code.
“The board of directors will now commence the process of winding up the company.”
The news comes after City A.M. reported earlier this month that In The Style could be set to return to the London Stock Exchange after a possible takeover deal was revealed.
The Manchester-headquartered business had floated on AIM in March 2021 with a market capitalisation of £105m but was forced to sell itself for just £1.2m to avoid collapsing into administration two years later.
Earlier this month the company, which was founded by Adam Frisby in 2013 from his bedroom with £1,000 in redundancy money, entered into a non-binding heads of terms with Iconic Labs.
ITS Holdings 2023 Ltd, which is owned by Baaj Capital LLP, currently holds the entire issued share capital of In the Style Fashion Ltd.
Iconic Labs, which is headquartered in London, was established as WideCells Group in 2018 and was based in Manchester.
In January this year, City A.M. revealed that In The Style’s revenue fell from £57.3m to £45.9m in the 12 months to March 31, 2023. Its wholesale revenue was cut from £12.6m to £6m while e-commerce fell from £44.6m to £39.9m.
The results also showed that its pre-tax losses widened from £1.5m to £7.7m over the same period.