In The Style's £1.2m sale to a private equity firm in a bid to avoid going into administration has been narrowly approved by its shareholders.
The Salford-headquartered company's deal was backed by just under 60% of voters at a general meeting which was held earlier today (Friday, March 24).
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Over 41% of shareholders voted against the deal, which was first announced earlier this month.
The company is to dispose of its only operating company, In The Style Fashion, to Baaj Capital LLP.
The deal includes a condition that founder Adam Frisby takes a stake in ITS Holdings 2023 Limited (Bidco), a newly-established company formed for the purposes of the sale and to also become chief executive of ITSFL on completion.
Earlier this month In The Style said that during the process, which was led by Lincoln International, it "had positive engagement" with several potentially interested parties but that some made proposals that were "not deemed by the board to be deliverable on an acceptable timescale". It added that none of the proposals involved an offer for the whole company.
The strategic review was kicked off in December at the same time as Mr Frisby returned as interim chief executive, replacing Sam Perkins.
At the time, the company said "the outcome of the strategic review may or may not result in a sale of the company or some or all of the group's business and assets".
A vote to cancel In The Style's shares on AIM did not pass at the general meeting meaning they will continue to trade past April 5.
The business said: "The company intends, as soon as practicable, to implement a members voluntary liquidation of the company in order to distribute the net proceeds of the sale received by it.
"However, while these net proceeds are expected to be approximately £500,000, the company will need to deduct the additional costs and expenses associated with the MVL, as well as the general administrative costs of now having to remain an AIM-quoted company, before the distribution of any residual value can be made to shareholders.
"On completion, the company will become an AIM Rule 15 cash shell, with no operating business.
"As the company does not intend to enter into a Rule 14 Transaction, the company's ordinary shares would be suspended from trading on AIM six months after completion (expected to be 27 September 2023), pursuant to Rule 40 of the AIM Rules, if the MVL has not been concluded by that date. admission to trading on AIM would be cancelled six months from the date of suspension."
The company is also planning to change its name to Itsum plc on completion to avoid any confusion with the In The Style brand and to reflect it becoming a cash shell.
In The Style floated on the London Stock Exchange's AIM in March 2021 with a market capitalisation of £105m.
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