Missguided founder Nitin Passi is stepping down as CEO and around 60 jobs are to be lost as the fast fashion ecommerce retailer appoints advisory firm Teneo to explore ‘strategic options’ for the business.
Having navigated Missguided through its recent fundraising and strategic review, Passi will step down as CEO but remain on the retailer’s holding company board.
The business reported making significant progress across a number of areas in recent months; addressing stock issues, streamlining warehouse operations and reducing head office costs.
The business had previously warned that 140 jobs were at risk earlier this year, when it began began a 45-day consultation process. The consultation came to an end this week and following a number of measures such as redeployment and voluntary redundancies, that number has been reduced to just over 60.
The fast fashion retailer said it has made “good operational progress in recent months”, allowing it to accelerate its plans to find a strategic partner with the infrastructure and platform to deliver the next stage in the company’s turnaround and maximise its potential.
Teneo recently led the sale of Studio Retail Group to Mike Ashley’s Frasers Group after it fell into administration.
“Missguided has made substantial operational progress since receiving new investment at the end of 2021, placing us on a sounder footing in a very short space of time and I want to thank everyone for their hard work,” said chair Ian Gray.
“That work means we’re now in a position to accelerate plans to explore strategic options for the business.”
Ian also thanked Passi for the brand he’d built from scratch, describing Missguided as “one of the most vibrant brands in young women’s fashion”.
“I recognise it’s never easy for founders to decide to step away from day-to-day leadership of the businesses they create but I respect Nitin’s decision and look forward to his continued guidance as a member of the holding company board.”
Passi added: “When I set up Missguided back in 2009 with a small loan from my family, I had no idea about the impact the brand would make, and I have great pride in what we’ve built.
“I look forward to making a continued contribution on Missguided’s holding company board.”