Employees affected by the collapse of fast fashion brand Missguided are looking to pursue legal action against the company over claims the redundancy process was not properly managed.
Based in Salford Quays, the company employed more than 330 staff when it went into administration on the 30th of May 2022, with reports suggesting that supply chain costs, rising inflation and “softening” consumer confidence were the leading causes.
The retailer has asked Teneo Financial Advisory to sell its business and assets.
The employment law team at Aticus Law says it has already been contacted by a number of former employees who have now lost their jobs, and who claim they were not properly consulted over the redundancy process.
The firm is now looking into the claims, with a view to pursuing legal action against them over the redundancy process was managed.
If successful, those involved in the challenge will be entitled to claim a Protective Award which is up to eight weeks’ worth of pay in compensation, with a cap of £544 per week.
Speaking on the shock collapse, a former employee now looking to pursue legal action has said: “Over the last 3-4 weeks there has been no communication from management, senior management was particularly bad.
“The entire company had a conference call with 25 minutes notice, people who weren’t there or on annual leave missed it. The call was an emotionless automated message saying that we had been made redundant and our services were no longer required.
“Many colleagues found out they had lost their jobs through social media, everyone is devastated.”
Speaking about the legal action, employment law expert Mohammed Balal of Aticus Law said: “The collapse of Missguided will have come as a shock to everyone, not least to its many employees.
“They have had their lives turned upside down because of the collapse, and it’s understandable that they’re worried about the future.
“While many people believe that since the business has entered administration there is nothing that can be done, those affected have the right pursue a claim and seek compensation from the Redundancy Services.
“Under the current employment law if a business is making more than 20 employees redundant at one establishment, they must follow the correct consultation process.
“We’re obviously in the very early stages of understanding what happened in this instance, based on what our clients are telling us, that didn’t happen at Missguided.”
Mohammed went on to explain that the firm is now investigating whether there are grounds to claim for a Protective Award, that is, compensation awarded by an Employment Tribunal if an employer fails in its duties.
He added: “The Protective Award is a vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice.
“However, many people don’t realise that you can only get a Protective Award payment if you are included as part of the claim and are listed as part of the Schedule of Claimants attached to the Tribunal Judgment.
“You can’t simply watch from the side-lines while ex-colleagues take the legal challenge forward. It’s important to make sure your name and specific job title is included.”
