Renowned fashion retailer Missguided has fallen into administration and now faces an uncertain future after it failed to secure a last-minute buyer. During a turbulent period in which the company was hit hard by surging supply costs, Missguided called in administrators Teneo after suppliers it owed millions of pounds to petitioned for it to be wound up.
Police were recently called to the Missguided head office in Manchester after suppliers arrived to demand the cash they say they were owed, according to reports. Bohoo, Asos and JD Sports were all reportedly interested in buying the business.
Teneo are now seeking to sell the business and assets of the retailer, which employs around 330 staff from its Manchester base. The insolvency specialists said there was keen interest from buyers wanting to snap up Missguided, meaning it could be saved from administration.
Missguided was founded in 2009 by Nitin Passi and grew rapidly amid rising demand for online fashion. However, the company faced problems with rising supply costs, wider inflationary pressures and waning consumer confidence in the increasingly competitive market.
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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".
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 managed to save online retailer Studio from collapsing earlier this year. Studio appointed Teneo in February after failing to secure a £25million rescue loan.
In March Studio was sold to retail tycoon Mike Ashley for just £1, after it entered administration with an £80million black hole.
