In The Style is on the brink of insolvency less than two years after the then London-listed online fashion retailer was forced into a fire sale to a family office investor.
Sky News has learnt that FTS Recovery is being lined up to act as administrator to the company, which was founded by Adam Frisby in 2013.
The fast-fashion retailer, which has aligned itself with a number of prominent social media influencers, has seen its financial performance deteriorate in recent years.
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Its collapse into administration will leave questions hanging over the future of its remaining workforce and its brand and other assets.
One source said that a pre-pack insolvency potentially involving Baaj Capital was one possible outcome from the process.
Mr Frisby returned to the company on at least two occasions before announcing his latest departure last year.
Once valued at more than £100m, In The Style was sold to Baaj Capital for just over £1m in March 2023.
It had floated on London’s junior AIM market in 2019.
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More recently, Baaj was on the brink of buying discount retail chain The Original Factory Shop, but was trumped by a rival offer from retail investor Modella Capital, Sky News reported on Wednesday.
Baaj Capital referred enquiries from Sky News to the public relations firm acting for FTS Recovery, which has been contacted for comment.