Missguided collapses into administration as it fails to secure rescue deal

// Missguided has fallen into administration after clothing suppliers that were owned millions issued a winding up petition for the firm

// Administrator Teneo said there was still “a high level of interest” in the retailer with Boohoo understood to be interested in buying its rival

Fast fashion firm Missguided has collapsed into adminstration after it failed to finalise a rescue deal.

Missguided appointed Teneo Financial Advisory as administrator on Monday after a winding-up petition was issued by its clothing suppliers who are owed millions by the fashion retailer.

The retailer had hired Teneo last month to advise to help it secure a new buyer but despite retailers including Boohoo, JD Sports, Shein and Frasers Group showing interest, a deal was not able to be secured.

It is understood that 140 of Missguided’s 340 staff are at risk of redundancy with reports that more than 80 people had been let go immediately, according to The Guardian.

Just last month, Missguided had made 63 staff redundant, following a 45-day consultation process.

READ MORE: How Missguided lost its direction – and can it get back on track?

It emerged over the weekend that rival Boohoo had been in talks to buy Missguided in a pre-pack deal.

Missguided was once an online fashion success story, however, it has failed to keep pace with bigger competitors Boohoo and Asos in recent years. It was also hit hard by supply chain disruption.

Late last year the retailer sought emergency funding and was forced to sell a 50% stake in the firm to Alteri, an investor that specialises in distressed businesses.

Last month, it called in Teneo to explore options for the retailer as founder Nitin Passi stepped down as chief executive.

Teneo senior managing director Gavin Maher 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.”

Missguided will continue to trade while in administration as Teneo look to sell the business.

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