Fast fashion brand Missguided on brink of collapse
The online fashion giant is understood to be arranging administrators from Teneo for a potential insolvency process
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Missguided is teetering on the brink of collapse after being issued a winding-up petition by suppliers owed millions.
The online fashion giant is understood to be lining up administrators from Teneo for a potential insolvency process.
Police were called to the retailer’s Manchester headquarters after suppliers turned up earlier this week demanding overdue payments be made, according to reports by the i newspaper.
On May 10, a winding-up petition was issued against Missguided by clothing supplier JKS Fashions.
Creditors have applied for compulsory liquidation and a Manchester court is due to hear the case in July.
The newspaper said three suppliers for Missguided warned they are at risk of going bankrupt due to outstanding payments.
Last autumn, the company was saved in a takeover by investment firm Alteri which announced redundancies in December as part of a turnaround plan.
Last month, Missguided confirmed it was looking for a potential new buyer as founder Nitin Passi stepped down as chief executive.
It hired Teneo to assess strategic options at the time and it is now understood that the corporate advisory firm would oversee any insolvency process.
“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 spokesperson for the company said. “A process to identify a buyer with the required resources and platform for the business commenced in April and we expect to a provide an update on progress of that process in the near future.”