In The Style Group PLC (AIM:ITS) shares tanked over 75% in Tuesday’s morning session following a strategic review of the womenswear fashion brand.
The group’s independent directors intend to recommend that shareholders approve the sale of the group for a total cash consideration of £1.2mln to a UK-based family office, payable on completion.
Non-executive directors Nancy Cruickshank, Adam Bellamy and Matthew Scaife will also step down from the board on completion without pay in lieu of notice.
In The Style Group is seeking the approval of shareholders to cancel the admission of the issued ordinary shares of £0.0025 each in the capital of the company to trading on the AIM junior market.
The company has proposed to change its name to Itsum plc on completion of the sale to avoid any confusion with the ‘In The Style’ brand.
Jim Sharp, chair of In The Style, commented: "Following a thorough review of different strategic options with our advisers and interactions with numerous parties, the independent directors have unanimously concluded that it is in the best interests of the company, its shareholders and its stakeholders to sell In The Style Fashion Limited to Bidco."
As of 8.50am, March 7, shares were changing hands at 1.74p with a market capitalisation of £895,000.