The administrators of an AI-based online fashion chain, who orchestrated a deal to sell the retailer’s intellectual property to Marks & Spencer, have appointed CAPA to conduct audits on the business.
Interpath Advisory, the corporate restructuring and rescue firm, has instructed CAPA to carry out rates audits on premises occupied by Thread Online, a business that specialised in providing personalised clothes for customers using AI and their own stylists.
Thread Online had pursued a high-growth, high-spend strategy while it developed its AI-based technology, since its incorporation in 2012.
The fashion specialist had reported losses each year and had expected to generate investment via a funding round in 2022. When this did not materialise, the business became unable to keep paying its overheads.
At this point the company engaged Interpath to run an accelerated M&A process. Chris Pole and Will Wright, of Interpath Advisory, were appointed as administrators in November 2022 and upon their appointment, they sold Thread Online’s intellectual property, including the source code and algorithms, to Marks and Spencer.
Completed via a pre-pack administration process, the deal will enable Marks & Spencer to integrate the technology into the M&S.com platform to accelerate the retailer’s own capability to provide personalisation for customers.
Interpath has since instructed CAPA, an appointment that will see the consultancy undertake forensic audits of rates paid to local authorities at all sites Thread Online traded from.
Using bespoke software, CAPA’s Audit team will interrogate the data to detect any errors, before recovering any overpayments for creditors.