Online clothing retailer Missguided is on the verge of collapse after a petition for liquidation was filed by clothing suppliers who owe millions of pounds.
The fast fashion company, which made a splash with its panties for 1 pound three years ago, is believed to be close to calling administrators from the bankruptcy specialist Teneo as early as Monday.
Police were called to the merchant’s headquarters in Manchester after suppliers appeared earlier this week with a request to make overdue payments, newspaper i reported.
On May 10, a petition for liquidation against Missguided was issued by Manchester-based clothing supplier JKS Fashions. Creditors have filed for compulsory liquidation, and a Manchester court is due to hear the case in July.
The newspaper said three suppliers for Missguided had warned that they were at risk of bankruptcy due to unpaid payments.
The Guardian understands that some suppliers in the UK and overseas have not received payments for months.
Last fall, the online retailer was saved from collapse when retail investor Alteri, backed by investment firm Apollo, intervened. Alteri announced layoffs in December as part of a change plan. Last month, Missguided said it was looking for a new buyer as its founder, Nitin Passy, stepped down as CEO. JD Sports and China-backed fashion retailer Shein are linked to potential offers.
Missguided hired Teneo to evaluate strategic options last month, and it is now understood that the corporate consulting firm will monitor every bankruptcy process.
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The company said: “Missguided is aware of the actions taken by some of the company’s creditors in recent days and is working urgently to address this.
“The process of identifying a buyer with the necessary resources and platform for business began in April and we expect to provide an update on the progress of this process in the near future.
Founded in 2009 by Passy, Missguided was one of the few internet fashion brands to enjoy success at a time when the traditional street is on its knees. The company has enjoyed rapid growth in the United Kingdom and is expanding into the United States, Australia, France and Germany, but has recently experienced difficulties. The £ 1 panties were selling at a loss as a marketing ploy.
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