Missguided is poised to secure a rescue deal with investment firm Alteri, after facing financial struggles due to the supply chain crisis.
The fast fashion company is understood to have agreed the terms of a deal with Alteri, which will give it a cash injection and loan.
The firm is backed by private equity company Apollo Global Management and specialises in purchasing struggling retailers. It is expected to orchestrate Missguided’s turnaround and appoint its directors to the retailers board, according to The Sunday Times.
Online fast fashion retailers have faced challenges during the pandemic with ongoing supply chain issues and high shipping costs significantly impacting margins.
They have also faced increased competition from increasingly popular and fast-expanding e-tailer Shein.
Sources previously told The Telegraph earlier this year that founder Nitin Passi was seeking £50m in emergency funding from outside investors.
In its most recently available account, over the 12 months to the end of March 2020, Missguided achieved a turnover of £201.9m and pre-tax losses of £8.2m.
In addition, Sharecast reported in September that JD Sports was considering acquiring the retailer.