Missguided, an online fashion specialist, called administrators after failing to secure a bailout.
The Teneo administrators were appointed on Monday after the company was sent with a petition for liquidation by clothing suppliers who owed millions of pounds. About 140 jobs are estimated to be at risk, with one source saying more than 80 people were immediately laid off.
Boohoo, a senior online fashion specialist, was in talks to buy Missguided in a pre-package administration deal, while JD Sports and Asos are also believed to have considered it, but the deal could not be finalized.
Administrators said Missguided will continue to trade as it seeks to complete the sale of the business and assets.
Gavin Maher, managing director of Teneo, said: “The retail environment in the UK remains extremely challenging”, but added that Missguided has generated “a high level of interest from a number of strategic buyers”.
The company continued to accept orders on Monday, but it was unclear whether the group’s distribution partner, GXO, continued to process those orders.
Some online retailers in the UK and overseas told the Guardian they had not been paid for months, and several said they had already struck a blow in December when they were asked for a 30% discount on already agreed orders.
A Leicester factory owner said he owed more than £ 2 million and was forced to send more than 90 workers home because he could not pay them. He said he could be forced to call administrators without payment because he had not been paid since April. “It’s completely unethical,” he said. “I’m absolutely disgusted.”
Another Leicester supplier said he owed about £ 600,000 and was unsure if the business could survive without orders from Missguided, which makes up most of his work. “I have already laid off 10 people. It is difficult to take another job because of the economy at the moment – customers do not take on new suppliers, “he said.
“This will have a big impact on our business. We’re not sure if we can trade because we have to pay our suppliers. It’s just shocking. “
Founded in 2009 by Nitin Passy, Missguided was among a small number of internet fashion brands that enjoyed success at a time when shoppers were increasingly turning their backs on the traditional street.
The business was set up with a £ 50,000 loan from Passy’s father, who is originally from India and amassed a fortune by setting up a major supplier on By Design Street after arriving in the UK in the 1960s.
During the pandemic, the company enjoyed rapid growth, but was struggling as physical stores reopened and purchasing power was affected by the cost of living crisis.
Last fall, the online retailer was saved from collapse when retail investor Alteri, backed by investment firm Apollo, intervened.
Last month, Missguided said it was looking for a new investment as Passy stepped down as chief executive.
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