Missguided collapses into administration as fast fashion brand seeks buyer
Missguided has collapsed into administration, after being hammered by supply chain costs and weakening consumer confidence.
Fast fashion rival Boohoo is interested in snapping up the beleaguered brand, CityA.M. understands.
Administrators from Teneo said there was “a high level of interest from a number of strategic buyers.”
The Manchester-based firm had fallen foul of an “extremely challenging” retail trading environment, Gavin Maher of Teneo, said.
It had been reported over the weekend by The Times that Boohoo could acquire the brand in a pre-pack administration rescue deal.
However, now Missguided will continue to trade while the joint administrators seek to complete a sale of the business and assets.
The troubled retailer was slammed by critics after suppliers accused the brand of owing them millions of pounds.
“Missguided is aware of the action being taken by certain creditors of the company in recent days, and is working urgently to address this,” a spokesperson for Missguided said at the weekend.
Earlier this year, the online retailer’s founder Nitin Passi announced he would step down as CEO as the brand mulled options for its future.
Passi, 38, started the online store in a factory in Manchester in 2009. It began with the help of a £50,000 loan from Passi’s father, which Cheshire-born Passi was able to repay within six months.
“We have seen many traditional high street retailers struggling for a number of years, with the pandemic accelerating a move towards online retail, which saw an understandable boom,” Tom Pringle, restructuring partner at law firm Gowling WLG, said.
“However, with pandemic restrictions over and in person shopping returning, online retailers are far from immune to the supply chain, inflationary and staffing issues that are plaguing the wider UK economy as a result of Brexit, Covid and the cost of living crisis,” he added.