Missguided suppliers expected to receive very little of £30m owed

Suppliers to the online fashion retailer Missguided are expected to get back less than 2% of the £30m owed to them, according to a report by The Guardian.

The money was owed by Missguided’s main trading entity before its demise in May and suppliers will likely only receive 1.7p for every £1 due.

The fast fashion firm had long-term debts amounting to over £80m when it collapsed, more than the the £57m it owed in 2021, according to the administrator’s report that has been sent to creditors.

Unsecured creditors are owed £46m, including money owed to suppliers, HMRC and employees. Further, large sums of money are also owed to other people with ties to the business.

Teneo administrators are allegedly pursuing legal action to obtain repayment of a £569,000 loan made by Rajib Passi, father of founder Nitin Passi, that he made to support the company.

READ MORE: Missguided changes name after Frasers Group acquisition

However, Rajib is not expected to be repaid any of the the £24.7m he loaned the group across the years.

Nitin Passi has also agreed to repay a loan of £333,000 he took from the company.

Private equity backer Alteri, who stepped in with rescue funding last year, will get back at least £18m, although it has pumped £58 million into the business.

Missguided was rescued by Frasers Group in a £20m deal at the start of last month.

The firm’s main trading entity had seen sales of over £282 million in 2021. However, that dipped to a little over £198 million in 2022, with underlying losses that continued to grow.

Missguided suppliers have filed an official complaint to the Insolvency Service over what campaigners call “a reckless approach” by the company’s private equity owners.

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