Missguided on the brink of collapse after ‘leaving millions of suppliers out of pocket’
Missguided is reportedly set to bring in administrators, with online insolvency specialists Teneo to handle the process. A liquidation petition was launched against Missguided on May 10 by supplier JSK Fashions
Missguided is on the verge of collapse after being accused of leaving millions of pounds behind with its suppliers.
The fast fashion retailer is set to bring in administrators, with insolvency specialists Teneo Online to handle the process.
A liquidation petition was filed against Missguided on May 10 by supplier JSK Fashions.
It comes as police were called to Missguided’s Manchester headquarters after vendors showed up demanding money they say is owed to them, according to the i newspaper.
Three factory owners also told the newspaper they were at risk of bankruptcy after Missguided failed to pay them for the clothes.
Alteri Investors, which saved Missguided from collapse last year in a deal worth £53million, has been looking for ways to sell the business in recent weeks.
JD Sports and Chinese fashion retailer Shein are expected to make an offer, although reports suggest that may not happen until after the company goes bankrupt.
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Teneo recently led the sale of Studio Retail Group to Mike Ashley’s Frasers Group after it fell into administration.
A spokesperson for Missguided told the i: “Missguided is aware of the action taken by some of the company’s creditors in recent days and is working urgently to address it.
“A process to identify a buyer with the required resources and platform for the business began in April and we expect to provide an update on the progress of this process in the near future.”
Last month, Missguided warned that 63 jobs were at risk, in addition to the 140 positions that were also confirmed to be at stake in March.
This comes as its founder Nitin Passi announced he was stepping down as chief executive.
At the time, Missguided confirmed that it had suffered from “increased costs resulting from supply chain disruption, cost inflation and weakening customer demand”.
In addition to the pandemic weighing on its sales, companies like Shein, a Chinese retailer, have begun to dominate the market by slashing prices.
Passi, 38, launched the online store in a Manchester factory in 2009 with a £50,000 loan from his father.
In the Channel 4 documentary Inside Missguided: Made in Manchester, he was revealed to have a plush flat in Chelsea, west London, with a Chanel surfboard wedged in his hallway.
In the year to March 31, 2021, Missguided achieved sales of £287 million, primarily in its largest UK and US markets.