EBTM, the online retailer and wholesaler of music inspired fashion, has put the business up for sale as it revealed sales have deteriorated rapidly over Christmas.
The company said net online sales dropped below management expectations, down 33% in December, compared to the previous year, and has issued a profit warning for the year to April 2009. It said trading in its wholesale division has remained “challenging and unpredictable”.
The company said in a statement: “The general economic environment has adversely impacted on EBTM’s sales and gross margins during the key Christmas trading period. The disappointing sales, together with the ongoing challenging conditions in the wholesale division, have consequently had an impact on the limited financial resources of the company.”
The retailer said it is evaluating strategic options which may involve a disposal of part or all of the group. If no offer is received it may seek alternative funding options.