Online retailer Missguided has collapsed into administration, after last-minute talks to find a buyer failed.
The clothing giant - which became famous for fast fashion - called in administrators Teneo after unpaid supplier JSK Fashions petitioned for it to be wound up, according to reports
Teneo is now trying to save the business, and said there is keen interest from buyers, meaning the company could be saved from administration. Online rival Boohoo - which bought Debenhams, Dorothy Perkins and Burton last year - had been in talks to buy the business in a pre-pack administration deal, while Asos and JD Sports were also reported to have been interested.
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Angry suppliers and factory owners claim Missguided owes them millions of pounds and they are facing bankruptcy due to outstanding payments. According to The i newspaper, police were reportedly called into the company's head office in Manchester because of suppliers' accusations, with one angry firm claiming they had to sell jewellery owned by their wife and mother to raise £40,000 to pay for staff's wages.
Insolvency specialists Teneo are now seeking to sell the business and assets of the retailer, which employs around 330 staff from its Manchester base, and have said business will continue to trade while they seek to sell off assets.
Missguided was founded in 2009 by Nitin Passi and grew rapidly amid rising demand for online fashion. However, the company was hit hard by surging supply costs, wider inflationary pressures and waning consumer confidence in the increasingly competitive market.
Gavin Maher, of Teneo, said: "As we continue to see, 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.
"We thank all employees and other key stakeholders for their support at this difficult time."
Last autumn Missguided was saved in a takeover deal by investment firm Alteri, which announced redundancies in December as part of its turnaround plan. However, last month the retailer confirmed it was looking for a potential new buyer as Passi stepped down as chief executive amid continued financial pressure.
Teneo saved online retailer Studio from collapsing earlier this year, selling it to ex-Newcastle United owner Mike Ashley for just £1, after it entered administration with an £80million black hole.
What about my order?
Administrators said the business will continue to trade while they seek to sell off assets and stressed that there has been a "high level of interest".
What does it mean when a company goes into administration?
It doesn't necessarily mean the end of the business.
It means an insolvency firm has been called in to run the company, and get what cash it can for creditors, by selling or utilising its assets. This process can last anywhere from a few weeks to a year or more.
What's the difference between administration and liquidation?
If the administration process can't rescue the company or find a new owner, this usually leads to liquidation.
Liquidation is the process of selling all assets and then dissolving the company completely.
The insolvency firm will collect any assets, try and sell what they can, and then distribute whatever cash remains to creditors, in order of priority.
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