Missguided closes in on administration

Fast fashion retailer Missguided is closing in on administration as its business remains on the brink of collapse after creditors issued it with a winding-up petition.

The news comes after the company was accused of leaving its suppliers out of pocket by millions of pounds.

Police were eventually called to Missguided’s head office in Manchester.

The retailer was issued its winding-up petition on 10 May by supplier JSK Fashions.

Missguided was saved from collapsing last year, and has since been searching for ways to save its business over the past few weeks.

Sports retailer JD Sports and fast fashion ecommerce behemoth Shein are both expected to table bids for the brand.

Insolvency specialists Teneo are understood to be preparing to step in as administrators if the business cannot be sold solvently.

Three factory owners have said they are on the cusp of going bust after Missguided has failed to pay them for deliveries.

Missguided was bought by Alteri for £53 million and the company has been throwing cash at the business since the start of the year.

The retailer’s founder Nitin Passi stepped down as chief executive last month but remains on the board of the online retailer’s parent company. He is no longer believed to own a majority stake in the business.

Missguided chairman Ian Gray said he remains optimistic about selling the business.

“Missguided is aware of the action being taken by certain creditors of the company in recent days, and is working urgently to address this,” Missguided said in a statement.

“A process to identify a buyer with the required resources and platform for the business commenced in April and we expect to provide an update on progress of that process in the near future.”

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