Retailer Missguided on brink of calling in directors | Retail trade

The net clothes retailer Missguided is teetering getting ready to collapse after being issued a winding-up petition by clothes suppliers who’re owed hundreds of thousands of kilos.

The quick trend firm, which made headlines with its £1 bikini three years in the past, is known to be near calling in directors from the insolvency specialists Teneo as early as Monday.

Police had been referred to as to the retailer’s Manchester headquarters after suppliers turned up earlier this week demanding overdue funds be made, the i newspaper reported.

A winding-up petition was issued on 10 Might in opposition to Missguided by the Manchester-based clothes provider JKS Fashions. Collectors have utilized for obligatory liquidation, and a Manchester courtroom is because of hear the case in July.

The newspaper mentioned three suppliers for Missguided warned they had been prone to going bankrupt due to excellent funds.

The Guardian understands some UK and abroad suppliers haven’t been paid for months.

Final autumn, the net retailer was saved from collapse when the retail investor Alteri, backed by funding agency Apollo, stepped in. Alteri introduced redundancies in December as a part of a turnaround plan. Final month, Missguided mentioned it was searching for a brand new purchaser, as its founder, Nitin Passi, stepped down as chief govt. JD Sports activities and the Chinese language-backed trend retailer Shein have been linked with potential bids.

Missguided employed Teneo to evaluate strategic choices final month and it’s now understood that the company advisory agency would oversee any insolvency course of.

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The corporate mentioned: “Missguided is conscious of the motion of being taken by sure collectors of the corporate in latest days, and is working urgently to handle this.

“A course of to determine a purchaser with the required sources and platform for the enterprise commenced in April and we count on to a present an replace on progress of that course of within the close to future.”

Based in 2009 by Passi, Missguided was amongst a small variety of web trend manufacturers to have loved success at a time when the standard excessive avenue is on its knees. The corporate loved fast development within the UK and expanded into the US, Australia, France and Germany, however has struggled just lately. The £1 bikini was being bought at a loss as a advertising and marketing stunt.

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