Adili, the online ethical fashion retailer co-founded by former ASOS director Quentin Griffiths, will announce plans to launch on the junior AIM market today, just over a year after it began trading.

The company will sell £1.5 million of stock worth 20 per cent of the business to drive expansion including the development of own-label merchandise.

Dorset-based Adili was set up last year to sell clothing, jewellery and accessories sourced under fair trade, organic and environmentally or socially responsible principles.

Sim Scavazza, the former head of Miss Selfridge, was signed up last month as creative director to lead product development, after joining the company as a nonexecutive director in February.

Adam Smith, Adili’s chief executive who spent eight years directing e-commerce development at Dixons Stores Group, said: “Sim has got one hell of a pedigree. I’m a retailer through and through but I’m not a fashion retailer. My project planning and her creative flair together bring strength and depth to the management.”

Ms Scavazza’s fashion eye will be important in rescuing Adili from the frumpy merchandise that has limited ethical clothing retail in the past. The own-label collection will be launched in autumn next year.

Mr Smith said he was bringing Adili – which means “ethical“ and “just“ in Swahili – to the market to benefit from the buoyant ethical and online retail markets. The Cooperative Bank’s Ethical Consumerism Report, published in 2006, shows that ethical clothing sales rose by 26 per cent to £29 million in 2005. Spending on personal products, such as humane cosmetics and eco-fashion, increased by almost 5 per cent to approximately £1.3 billion. E-commerce continues to grow at a faster rate than high street retailing. According to Interactive Media in Retail Group, the etailing industry group, £42 billion will be spent online by UK shoppers in 2007.

Mr Smith said: “The PR generated by blue chip companies such as Marks & Spencer doing fair trade and organic ranges means that has really entered consumer awareness, but the blue chips can’t deliver the full range of goods. We’ve really established ourselves in that niche with first mover advantage.” He is hoping a listing will build credibility with suppliers and bring in funds to help the brand to break even.

Investors and analysts will welcome Mr Griffiths being on the board, following the success of ASOS, one of the fastest growing retailers on the market this year. He was also involved in Everything But the Music, another online retailer which launched on AIM in March last year.

John East & Partners is acting as Adili’s nominated adviser and broker and first dealings in the shares are expected to commence in late November.

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