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, AJ Bell investment director said, “Flash sales are time-limited sales events in which fashion, beauty and homeware 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.”
Mould added, “Given Mike Ashley’s appetite to own even the most beaten-up retail vehicles, think Debenhams 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 MySale was in trouble.”