// Missguided suppliers to be paid less than 2% of £30m owed to them after administration
// The group will pay out less than 1.7p in the pound to factory owners supplying its main brand
Missguided suppliers are expected to be paid less than 2% of £30 million owed after the fashion retailer collapsed in May.
Suppliers to the business are expected to be paid less than 2% owed to them by Missguided’s main trading entity.
The group will pay out less than 1.7p in the pound to factory owners supplying its main brand after it collapsed with long-term debts of more than £80 million, up from £57 million in 2021.
Unsecured creditors are owed £46 million in total. This includes cash owed to suppliers, HMRC and employees, The Guardian reported.
Administrators from Teneo said they were considering legal action to chase repayment of a £569,000 loan made to Missguided founder Nitin Passi’s father Rajib Passi.
Rajib is not expected to be repaid any of the £24.7 million he loaned the group to support it in recent years, while Nitin has agreed to repay a loan of £333,000.
Meanwhile, Alteri, Missguided’s private equity backer will receive at least £18 million of the £58 million it put into the business, after the sale of its intellectual property to Mike Ashley’s Frasers Group for £20 million.
The tax authorities will also receive £530,000 in respect of VAT, employers’ national insurance and other payments.
Missguided was rescued from administration last autumn when Alteri stepped in, buying a controlling stake and taking seats on the board.
Suppliers to Missguided have filed an official complaint to the Insolvency Service over what campaigners say was “a reckless approach” by the company’s private equity owners.