The Manchester based online fashion retailer Missguided has called in administrators who have been told to find a buyer for the business after it was hit by a winding up order from suppliers who had not been paid
The business which employs over 300 people is thought to be putting 140 jobs at risk, with The Guardian citing a source as saying more than 80 people had immediately been made redundant.
Teneo Financial Advisory who have been appointed as administrators said that it would continue to trade while it looked for a buyer and added that there had been a number of interested parties
In a statement Teneo said:
Like many retailers, Missguided has suffered from increased supply chain costs, general cost inflation and softening consumer confidence in an increasingly competitive market.
It was founded by Nitin Passi in 2009. It grew to become one of the UK’s biggest online fashion players but was rescued last autumn by the finance firm Alteri Investors.
According to reports, police were called to Missguided’s Manchester headquarters after suppliers turned up earlier last week demanding overdue payments.
Customers have also been complaining in social media about the Company taking orders while knowingly being unable to supply goods
One customer said on Twitter:
“Missguided robbing people of their money at this point. Ordered on Thursday with Friday am delivery, parcel is still sat in the warehouse, messaged on Friday was told Saturday, messaged Saturday was told Sunday/Monday. Messaged today to be told Tuesday.”
“Missguided has failed to pay suppliers in Leicester East for months now. Workers have been laid off without pay or notice and factories relying on Missguided have closed.” said Claudia Webbe MP on Twitter
