Fashion retailer Missguided ‘on brink of collapse with suppliers left out of pocket’
ONLINE fashion giant Missguided is on the brink of calling in administrators as the business is close to toppling.
The clothes company has been accused of not paying suppliers and is facing collapse.
A winding up petition was issued against Missguided on May 10 by supplier JSK Fashions, according to Retail Gazette.
And factory owners are claiming they are millions of pounds out of pocket and facing collapsing too.
The police were reportedly called into the company's head office in Manchester because of suppliers' accusations.
One angry supplier told The i that they had to sell their wife's wedding jewellery and mum's too to raise £40,000 to pay for staff's wages.
They claimed they would go bust if Missguided goes into liquidation.
Teneo is understood to be on stand by should the company be unable to find a buyer to save it from going under.
JD Sports and Shein are expected to make bids to take over the company, according to reports.
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.”
It follows on from December when the company made a series of redundancies to try keep afloat.
It 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 Zalando.
It employs around 400 people in Manchester, according to the Manchester Evening News.
In summer last year, Missguided announced it would be selling clothes in 100 Asda stores across the UK.
More to follow…
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