MySale put up for sale as Sir Philip Green backed online store falters

MYSALE, the online retailer backed by Sir Philip Green, put itself on the block today as it admitted to “challenging” trading conditions, especially in its home market of Australia.

A strategic review aimed at “maximising value for its stakeholders” will “consider all types of corporate activity”, said a statement.

That could include raising capital, selling part or all of the business or delisting the shares from AIM.

The shares, at 72p a year ago, plummeted more than 40% today, down 2.9p at 3.8p. That values the firm at less than £6 million. It listed in 2014 at 226p a share, making it worth £340 million.

Backers hoped MySale could replicate the runaway success of boohoo.com. Instead it has been buffeted by changes to Australian tax regulation.

Sports Direct founder Mike Ashley also had an interest in MySale, but ditched his near 5% stake recently after a disagreement with Green, according to reports. Green is thought to still hold 22% of the business.

MySale was open about the extent of its difficulties. The statement said: “The group continues to operate within its existing banking facilities… However, given the market challenges that the group continues to face and the reduction in financial performance, it is possible that additional funding may be required in the short term to support the restructuring and cost reduction initiatives being undertaken.”