An investment giant has slashed its stake in online fashion brand In The Style following a warning the company will lose more than first expected.
Lombard Odier Asset Management had held a 19.82% stake in the Salford business but has gradually reduced it to just 2.54% since In The Style's trading update on January 20.
The investor had previously been the company's second largest shareholder, behind founder and interim chief executive Adam Frisby.
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Separately, Octopus Investments has also cut its holdings from 6.9% to 1.5% following the announcement.
In the update, In The Style warned it will lose more than previously expected during its current financial year.
The company revealed it is now forecasting its full-year adjusted EBITDA loss will be between £4.25m and £4.75m. The AIM-listed company added it now also expects its revenue to be around £46m.
In the 12 months to the end of March 2022, In the Style reported a revenue of £57.3m, up from £33.7m, and pre-tax losses of £1.5m compared to a profit of £125,000 in the prior year.
In The Style said its revenue drop reflected "market-wide cost-of-living pressures on consumer demand, higher levels of markdowns and a reduction in wholesale demand".
It added that it will "continue to focus on cash management and liquidity".
The trading update came after the company appointed Lincoln International to lead a strategic review which could lead to a full or part sale of the business.
In The Style uses influencers such as Stacey Solomon and Gemma Atkinson to promote its products.
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