Missguided has warned that 140 jobs are at risk, due to ongoing supply chain disruptions, inflation and a decline in customer demand.
The fast-fashion retailer said that a 45-day consultation period has now started as part of a “comprehensive restructure of the business”.
The company sold a 50% stake to Alteri, backed by private equity investor Apollo last year, after revealing it was on the brink of collapse.
The same investment management firm will potentially bail the company out of current crisis talks.
“The fashion industry has had a tough 18 months with increased costs arising from supply chain disruption, cost inflation and weakened customer demand arising from the pandemic,” Missguided said.
“Missguided has not been immune to those challenges and at the end of 2021, with the help of external consultants, began a review of its structure in the light of market conditions.
“Missguided is acutely aware of the disruption this will cause to its colleagues. It’s committed to offering support to its people, as it implements the proposed restructure as quickly as possible to provide certainty to its colleagues.”
Misguided reported sales of £287million in the year to March 2021, with the UK and US being its two largest markets.