Boohoo may provide a rescue package for troubled online fashion brand Missguided
(Picture: Boohoo)Boohoo is readying a pre-pack bail out for rival and online fashion retailer Missguided pulling the company from the jaws of the administrators.
Missguided is facing collapse after a winding up petition was issued earlier this month on behalf of unpaid supplier JSK fashions. The company looks set to engage administrators Teneo for the insolvency process.
Upset suppliers and manufacturers claim Missguided owes them millions of pounds and that has placed them under the threat of bankruptcy due to unpaid invoices.
In a statement, the company said: “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 process to identify a buyer with the required resources and platform for the business commenced in April and we expect to provide an update on progress of that process in the near future.”
Authorities have already been called to the company’s head office in Manchester because of accusations by suppliers.
Last autumn, the online retailer was saved from collapse as the retail investor Alteri, backed by investment firm Apollo, backed the company.
Alteri then announced redundancies last December as part of a financial restructuring of the business.
Last month, Missguided started looking for a new buyer, as founder, Nitin Passi, stepped down as chief executive. High street retailer JD Sports has also been linked with a potential bid.
The retailer was founded in 2009 by Passi and is most famous for announcing that it was to sell a bikini at £1 that many commentators saw as a marketing stunt in a crowded fast fashion market.
Boohoo declined to comment on reports.
