Online fashion retailer In The Style is hoping to cash in on the lockdown-fuelled boom in internet clothes shopping with a stock market listing.
The company, started six years ago in a bedroom by entrepreneur Adam Frisby, has hired Liberum to investigate its options. A flotation on the Aim market early next year is understood to be the preferred result.
City sources say In The Style, which links up with celebrities from reality TV and online influencers to create, model and market its clothes, could be valued at more than £100m.
The company’s Instagram’s feed has 2.7m followers. Famous faces who have worked with the fashion business include The Only Way Is Essex’s Gemma Collins and Love Island’s Dani Dyer.
Mr Frisby, who launched the business with £1,000 of savings, is also a regular poster on Instagram, promoting his business and lifestyle.
Measures to limit the spread of coronavirus have resulted in a sales surge for the business, with revenue doubling in the first half of this year and driving the business into profit.
This trend is thought to be behind the company hoping for a tech stock valuation.
According to In The Style’s most recent accounts filed at Companies House, it ran up a £1.5m pre-tax loss on sales of £17m in the year to end of March 2019.
A flotation could be an opportunity to exit Manchester-based In The Style for Irish investor Causeway Capital, which is reported to have paid £2.5m in 2018 to take a controlling interest.
Causeway is understood to have bought out Livingbridge Venture Capital, which paid £5m for the stake just a year before in a deal valuing In The Style at £50m.
In The Style declined to comment.