Is fashion firm’s future hanging by a thread?
ITS budget-friendly styles – including a £1 bikini – saw the firm become one of the UK’s largest online fast fashion retailers. But yesterday Missguided called in administrators after failing to agree a rescue deal. It was issued with a windingup petition by some of its suppliers, who are due payments worth millions of pounds. The online retailer, which has in the past collaborated with several celebrities including singer Nicole Scherzinger and model Sofia Richie, had been in talks with Boohoo, JD Sports and Asos but none ended in a takeover. Administrator Teneo confirmed that Missguided would continue to trade while a buyer is sought.
Although the firm appeared still to be accepting orders yesterday, it was not clear whether its distribution partner GXO will take them on. Missguided, which has about 330 staff, was founded by Nitin Passi, who set up the firm in 2009 with a £50,000 loan from his father.
It was one of the first online retailers to use celebrity endorsements on social media to promote its clothes. Following its success, fitness fanatic Mr Passi bought a pink Lamborghini. Aimed at women aged 16 to 35, Missguided made headlines three years ago with its £1 black polyester bikini.
It was rescued in the autumn by the finance firm Alteri Investors and has recently been trying to find a buyer.
But last week police were reportedly called to its head office in Manchester after suppliers accused the firm of leaving them heavily out of pocket.
Teneo’s Gavin Maher said: ‘The retail trading environment in the UK remains extremely challenging. The joint administrators will now seek to conclude a sale of the business and assets, for which there continues to be a high level of interest from a number of strategic buyers.’
‘Interest from several buyers’