Online fashion giant Missguided is on the verge of calling an administrator over accusations of not paying its suppliers.
The clothing company, which employs about 400 people, is reportedly facing collapse after an unpaid supplier, JSK Fashions, issued a petition for liquidation earlier this month, according to Retail Gazette. The internet fashion giant is thought to be preparing Tene administrators for a potential insolvency process.
Angry suppliers and factory owners claim that Missguided owns them millions of pounds and that they are on the verge of bankruptcy due to outstanding payments. According to and newspaperspolice were reportedly called to the company’s headquarters in Manchester over allegations by suppliers, and one angry supplier claimed they had to sell their wife’s and mother’s wedding jewelry to raise £ 40,000 for staff salaries.
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Teneo is thought to be on the alert if the company is unable to find a buyer to save it from bankruptcy, although reports say JD Sports and Shein are expected to make takeover bids. Last month, Missguided confirmed it was looking for a potential new buyer after founder Nitin Passi resigned as chief executive.
Missguided told the Retail Gazette: “Missguided is aware of the actions taken by certain creditors of the company in recent days and is urgently working to address this issue. The process of identifying the customer with the necessary resources and business platform began in April and we expect to provide up-to-date information on the progress of the process. “
In December, the company made a series of layoffs to try to stay afloat. and also sold 50% of the business to private investment firm Alteri. Missguided was founded in 2009 and also sells its clothing on major fashion platforms such as ASOS and Next. In the summer of 2021, he started selling clothes in 100 Asda stores across the UK. The brand has no store, having closed one store in London just three years after opening.
Missguided is the latest fashion chain that is experiencing financial difficulties. as a pandemic put pressure on those who are already struggling retail sector.
As of 2021, the following well-known fashion names have gone bankrupt, although some still trade online:
TM Lewin: Founded in 1898, the shirt factory fell into management for the second time on March 17 this year. The company, which employed about 50 workers and had a store in Newcastle, faced challenges caused by a drop in formal shirt purchases as consumers worked from home and restrictions on major events. It was saved the following month and now only works online.
Amanda Wakeley: Fashion designer Amanda Wakeley’s retail brand entered management in May 2021, citing the impact of the pandemic. The fashion brand became famous after its pantsuits were worn by Princess Diana and former Prime Minister Theresa May. Its main Mayfair store has closed, but it continues to trade online.
Debenhams: The 241-year-old retailer entered the administration last year, but attempts to save his stores fell through in 2021. It was last December in liquidation after JDSports withdrew from rescue talks. Boohoo eventually bought the name and website of Debenhams in a £ 55 million contract during March 2021 – but not its 124 stores. As a result, about 12,000 jobs were lost.
Dorothy Perkins, Wallis and Burton: Dorothy Perkins, Wallis and Burton were the three main victims of the collapse of Arcadia. Online retailer Boohoo entered in April 2021 and bought all three brands and websites as part of £ 25.3 million. However, Boohoo did not buy the physical stores, which meant that 214 stores were closed forever.
Jaeger: The top fashion brand Jaeger disappeared from the main street in 2021. It was taken over by Marks and Spencer in January 2021, but its 63 stores in the UK were permanently closed.
peacocks: Peacocks fell into the administration in November 2020, jeopardizing its 423 stores and thousands of jobs. However, it was rescued by a group of international investors in April 2021, with the support of Chief Operating Officer Edinburgh Woolen Mill. About half of his shops were reopened, but the rest were closed forever.
Topshop, Topman, Miss Selfridge: These brands were a gem in the crown of the Arcadia retail empire, but their doors were closed forever in 2021 after Arcadia entered the administration in November and subsequent rescue plans failed. ASOS bought Topshop, along with Topman and Miss Selfridge in April 2021 as part of a £ 330 million deal to save brands. But ASOS has not purchased hundreds of physical stores as part of the contract, but you can still shop at Topshop, Topman and Miss Selfridge online on the ASOS website.
Retail giants John Lewis and Marks and Spencer also closed stores last year, and another 32 M&S stores are due to close, it was announced.