Online fashion giant Missguided is on the brink of calling in administrators amid accusations of not paying its suppliers.
The clothes company, which employs around 400 people, is said to be facing collapse after a winding up petition was issued earlier this month by unpaid supplier JSK Fashions, according to Retail Gazette. The online fashion giant is understood to be lining up administrators from Teneo for a potential insolvency process.
Angry suppliers and factory owners claim Missguided owns 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 supplier claiming they had to sell their wife and mother's wedding jewellery to raise £40,000 to pay for staff's wages.
Read more: BrightHouse customers look set to get nothing after firm collapsed into administration
Teneo is understood to be on standby should the company be unable to find a buyer to save it from going under, although reports claim that JD Sports and Shein are expected to make bids to take over the company. Last month, Missguided confirmed it was looking for a potential new buyer as founder Nitin Passi stepped down as chief executive.
Missguided told the Retail Gazette: "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.”
In December, the company made a series of redundancies to try keep afloat. and also sold 50% of the business to private equity firm Alteri. Missguided was founded in 2009, and also sells its clothes on big fashion platforms like ASOS and Next. In summer 2021, it started selling clothes in 100 Asda stores across the UK. The brand has no stores, after closing one store in London only three years after it opened.
Missguided is the latest fashion chain to suffer financial difficulties. as the pandemic put pressure on the already struggling retail sector.
Since 2021, the following well-known fashion names have collapsed, although some still trade online.:
T M Lewin: Established in 1898, the shirtmaker fell into administration for the second time on 17 March this year. The company, which employed around 50 staff and had a shop in Newcastle, faced challenges caused by the fall in formal shirt purchases as consumers worked from home and restrictions on large events. It was saved the following month and now operates online only.
Amanda Wakeley: Fashion designer Amanda Wakeley's retail brand went into administration in May 2021, citing the impact of the pandemic. The fashion label has gained notoriety after its trouser suits were worn by Princess Diana and former Prime Minister Theresa May. Its flagship Mayfair store has closed but it continues to trade online.
Debenhams: The 241-year-old retailer entered administration last year but attempts to save its stores ran into 2021. It went into liquidation last December after JDSports pulled out of rescue talks. Boohoo eventually purchased the Debenhams name and website in a £55million deal during March 2021 - but not its 124 stores. Around 12,000 jobs were also lost as a result.
Dorothy Perkins, Wallis and Burton: Dorothy Perkins, Wallis and Burton were three of the main victims of the Arcadia collapse. Online retailer Boohoo swooped in during April 2021 and purchased all three brands and websites as part of a £25.3million. However, Boohoo didn’t buy the physical shops, which meant 214 stores closed forever.
Jaeger: The high-end fashion brand Jaeger disappeared from the high street during 2021. It was taken over by Marks and Spencer in January 2021 but its 63 UK stores were permanently closed.
Peacocks: Peacocks fell into administration in November 2020, putting its 423 stores and thousands of jobs at risk. However, it was rescued by a group of international investors in April 2021, backed by the chief operating officer of Edinburgh Woollen Mill. Around half of its stores have reopened, but the rest have closed forever.
Topshop, Topman, Miss Selfridge: These brands were the jewel in the crown of the Arcadia retail empire but their doors closed forever in 2021 after Arcadia entered administration in November and subsequent rescue plans failed. ASOS bought Topshop, alongside Topman and Miss Selfridge in April 2021 as part of a £330million deal to save the brands. But ASOS didn’t buy the hundreds of physical shops as part of the deal but you can still shop at Topshop, Topman and Miss Selfridge online on ASOS’ website.
Retails giants John Lewis and Marks and Spencer also closed stores last year, with another 32 M&S stores due for closure, it has been announced.
