Knitwear brand The Knotty Ones goes up for sale amid challenging market conditions

Premium knitwear brand The Knotty Ones has launched a sale of the business after a decline in consumer spending and challenges accessing investment capital impacted performance.

The Lithuanian label has appointed Hilco to oversee the sale of the business and assets. The firm stated it could either operate as a standalone company or as a bolt-on to an established party.

The Knotty Ones was founded in 2014 by three friends; Akvilė Meškauskaitė-Dobrajs, Sandra Pangonytė, and Danutė Rasimavičiūtė. The trio established the label as a knitwear specialist championing a sustainability and ethical production ethos by working with independent knitters and local artists to create contemporary collections.

The company, which operates its own direct-to-consumer e-commerce platform, gained recognition globally and has been worn by public figures like Kelly Rutherford, Hilary Duff and Tom Daley.

Earlier this year, fashion industry veteran Sergio Azzolari was named as its new chief executive officer. His experience in leadership positions at the likes of Roberto Cavalli and Dsquared2 was considered vital amid The Knotty Ones ongoing growth journey, specifically as it looked to enter new markets.

Despite efforts to expand, however, The Knotty Ones has continued to operate within a challenging market environment. In a post on its Instagram page earlier this month, the company said its decision to “choose craftsmanship over mass production” has made it “harder to navigate today’s market”.

The statement continued: “We chose to keep our makers visible. We chose to build a business rooted in heritage, quality and human connection. We still believe those were the right choices.

“But customers are spending less, investment capital is harder to access, and responsible businesses often carry costs that fast fashion simply does not.”

Now, Hilco is searching for a buyer for the label. In a press release, the firm said the deal comes with an opportunity to collaborate with or retain the expertise of Azzolari. The sale includes the trademarked brand name, intellectual property assets, product range, and the "valuable goodwill”.

The company’s turnover for the year ended 2025 came to 1.2 million pounds, with a gross profit margin of 61 percent.

The Knotty Ones is currently selling off its remaining stock via a ‘Farewell Sale’ on its website, urging consumers to purchase the products in the hope that there is a “greater chance that this story does not end here”.