Will In The Style make a stock exchange comeback?

The boom in fashion firms listing on the London Stock Exchange had appeared to be over, but news this week suggests listed companies still see value in fashion firms with In The Style potentially making a stock market comeback. 

Iconic Labs Plc’s share trading has been suspended for now as the company confirmed it in discussions regarding the potential acquisition of the business.

Iconic — which is now London-based but had previously been headquartered in Manchester — said it’s “pleased to confirm that it has now entered into non-binding heads of terms with the owners of ITS Holdings 2023 Ltd, the holder of the entire issued share capital of In the Style Fashion Ltd, an online fashion retailer, in connection with the potential purchase of the entire issued share capital of the target”. 

If completed, it would be a a reverse takeover under the Listing Rules. The suspension of Iconic’s shares will continue until a prospectus is published in relation to the proposed acquisition or the company announces that the discussions have been terminated.

Its CEO Brad Taylor said: “We are delighted to have entered into a heads of terms to acquire ITS Holdings 2023 Ltd. This transaction has been one of multiple opportunities carefully considered by the board of Iconic and we believe this proposed acquisition meets our objectives and wider strategy of fostering long-term growth and value for our shareholders.”

If it happens, it would be an unexpected comeback for ITS. The Manchester-based firm was one of the biggest names coming out of that city’s mass-market e-fashion boom last decade and listed on London’s Alternative Investment Market (AIM) in 2021. It had a market value at the time of £105 million but was in danger of an administration filing two years later when it sold itself for only £1.2 million.

It’s currently owned by Baaj Capital LLP and its most recent results (for the year to the end of last March) saw revenue dropping from £57.3 million to £45.9 million while its pre-tax losses grew to £7.7 million after a loss of £1.5 million a year earlier.