Missguided has warned that 140 jobs remain at risk following supply chain disruptions, inflation and a decline in customer demand.
The fashion retailer said a 45-day consultation period has started as part of a “comprehensive restructure of the business”.
It sold a 50% stake to Alteri, backed by US private equity giant Apollo, last year after revealing it was on the cusp of collapse.
It is understood that the same investment management firm could bail Missguided out of current crisis talks.
“The fashion industry has had a tough 18 months with increased costs arising from supply chain disruption, cost inflation and weakened customer demand arising from the pandemic,” Missguided said.
“Missguided has not been immune to those challenges and at the end of 2021, with the help of external consultants, began a review of its structure in the light of market conditions.
“Missguided is acutely aware of the disruption this will cause to its colleagues. It’s committed to offering support to its people, as it implements the proposed restructure as quickly as possible to provide certainty to its colleagues.”
Misguided reported sales of £287million in the year to March 2021, with the UK and US being its two largest markets.
Alteri is backed by the private equity giant Apollo Global Management, which specialises in buying struggling retailers.
It comes as companies like Shein, a Chinese retailer, have started to dominate the market, chipping away at Missguided’s fast-fashion market share and undercutting it.
Missguided founder, Nitin Passi, 38, started the online store in a factory in Manchester in 2009 with a £50,000 loan from his father.
Earlier this week it emerged that the billionaire brothers of Asda could be next in line for a £9billion takeover of pharmacy chain Boots.
Boots is owned by US-based company Walgreens Boots Alliance, which unveiled a 'strategic review' of its 2,000 UK stores in January.
This week, a team of interested buyers, Bain Capital and CVC Capital Partners, dropped out of a £6billion deal, but the owners of Asda are still in the running.
Sources said the firms pulled out because Walgreens wanted too much money for Boots.
Buyers who are also understood to be interested in the past include investment firm Advent, Carlyle and KKR.
KKR owned Boots in the past, before selling it to Walgreens.
