UK: Missguided falls into administration following failed rescue bid

UK: Missguided falls into administration following failed rescue bid

by Pranali Mehta

Missguided, a online apparel retailer based in the UK, has reportedly called for administrators following its failure to land a rescue deal.

As per report, Teneo administrators were called in at the start of the week after the firm was served with a winding-up petition by apparel suppliers who the retailer owes millions of pounds in payment.

Around 140 jobs are said to be in jeopardy, with sources claiming that over 80 workers were instantly laid off.

Boohoo, a bigger online clothes retailer, had been involved  in talks to acquire Missguided in a pre-pack administration agreement, while Asos and JD Sports are also believed to have looked into it but were unable to close the deal.

According to the administrators, Missguided will continue to operate its business while they work to sell the company and its assets.

Gavin Maher, Teneo’s managing director, claimed that the retail trading conditions in Britain remain extremely competitive, adding that Missguided has sparked a strong level of interest from numerous strategic buyers.

The firm was still taking orders at the start of the week, but it was uncertain whether GXO, the firm's distribution partner, was still handling them.

Some of the company's UK and international suppliers stated that they had not been paid in months, with many alleged they had previously been shortchanged in December when they were requested for a 30% discount on orders that had already been accepted.

A factory owner in Leicester stated that he was owed over £2 million ($2.5 million) and had been pressured to send his 90-plus employees back home because he was not able to pay them. He stated that he may be obliged to call in administrators as well since he has not been paid since April.

While the online fashion firm saw significant growth during the pandemic, it has suffered to sustain the momentum since physical stores reopened and the ongoing cost of living crisis has severely compromised people's spending power in the country.

The online store was saved from bankruptcy last autumn when retail investor Alteri, which is backed by prominent investment company, Apollo, intervened.

In April of 2022, Missguided had announced that it was seeking a new investor after Passi stepped down as the CEO.

Source credit: https://www.theguardian.com/business/2022/may/30/online-fashion-retailer-missguided-calls-in-administrators

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...