Missguided lines up administrators as the fast fashion company faces collapse after creditors filed for liquidation.
Police were reportedly called to the company’s Manchester headquarters after angry suppliers showed up after millions of pounds were left out of their pockets.
According to court documents, a winding-up application was filed against Missguided on May 10 by Manchester-based supplier JSK Fashions.
Alteri Investors, which saved Missguided from collapse last fall, has been scrambling to sell the company in recent weeks, with JD Sports and Chinese-backed rival Shein being linked with making an offer.
However, industry insiders have repeatedly warned that applicants are more likely to wait and buy the company out of bankruptcy.
Insolvency specialists Teneo are said to be preparing to step in as insolvency administrators if the business cannot be sold in a liquid manner.
According to i, which first reported Missguided’s possible collapse, office workers are said to have stopped taking calls from factory owners.
Three factory owners told the newspaper they are also facing bankruptcy after Missguided failed to pay for their clothes. One even claimed he had to sell his wife’s jewelry to pay his own staff.
Alteri, a distressed investor backed by Wall Street investment giant Apollo, has pumped millions of pounds into Missguided since the beginning of the year. It bought the company for £53million last autumn.
Multi-millionaire Nitin Passi, who founded Missguided 12 years ago with a £50,000 loan from his father, resigned 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 company.
Ian Gray, Missguided’s chairman, has insisted he is optimistic about the prospect of selling the company.
Missguided pioneered the use of celebrity endorsements via social media to promote its clothing.
Mr Passi, a fitness fanatic who owns a pink Lamborghini, is said to have paid off his father’s loan within six months.
A Missguided spokesperson said: “Missguided is aware of the actions taken by certain of the company’s creditors over the past few days and is working urgently to address this. A process to identify a buyer with the necessary resources and platform for the deal began in April and we expect to provide an update on the progress of this process in the near future.”
https://www.telegraph.co.uk/business/2022/05/26/missguided-brink-collapse/ Missguided on brink of collapse