Online fashion retailer MySale has been put up for sale, the company was previously backed by Mike Ashley and Sir Philip Green.
The company are trying to reduce debts and have undertaken a “strategic review” to find a buyer for the troubled online retailer.
Since joining the junior AIM stock market in 2014 the company’s value has plummeted from £340m to less than £10m.
The company said that they are focusing on a major retrenchment strategy on “Australia and New Zealand First” and are to sell off their UK and US divisions to include their website cocosa.co.uk.
In a statement MySale said, “The group has continued to experience challenging trading conditions in Australia, its largest market, primarily due to the market disruption caused by changes to GST regulation introduced in July 2018, exacerbated by the group’s product mix, international cost base and inventory location.
“This has had and continues to have a negative impact on the group’s financial performance, with declines in revenue, gross profit and gross margin.”
Russ Mould, AGE Bell investment director said, “Flash sales are time-limited sales events in which fashion, beauty and homeward products are offered to a closed member base.
“Customers get access to leading brands at low prices, while firms have an avenue to dispose of excess stock at a discount.
“This seems like it could be a winning proposition, but it is one on which MySale has failed to execute.”
Would added, “Given Mike Ashley’s appetite to own even the most beaten-up retail vehicles, think Debentures or House of Fraser, the fact the Sports Direct owner put his holding on the scrapheap last month should have been a clear warning sign that My-sale was in trouble.”
Northern Sole owns, distributes and licenses branded clothing, accessories and footwear to department stores, sports chains, fashion labels and about 400 independent stores across the UK, Ireland and Europe. The company works closely with footwear and accessories brands to enhance their sales by designing and distributing new products for them. Founded in 2016, the business is headquartered in Manchester and has a showroom off Brick Lane in Shoreditch.
Juls Dawson, Co-Founder of Northern Sole Supply Co Limited said:“Thanks to Aldermore, we have access to the cash flow we need to run and grow the business. Crucially, we now know that we have the capital to fulfill new orders to sustain our growth.”
Eyal Tzabari, Co-Founder of Northern Sole Supply Co Limited added:“Aldermore provided us with the clarity and support we needed to meet our funding needs and were able to offer a better, more flexible finance solution than other providers.”
Laura Poncini, Senior Relationship Manager at Aldermore, says: “Northern Sole have been a very exciting company to work with. Juls, Eyal and others at the company are ambitious people who love what they do. You can feel their excitement at their business’ potential and we’re delighted to help them secure the cash they need to continue on their journey.
“The trade finance and invoice finance facility that was used was useful for Northern Sole as they import and export products from many countries abroad. Alder more