Fast fashion retailer Missguided is on the brink of collapse after being issued with a winding-up petition by creditors.
It is understood that the company, which has about 330 employees, could summon officials as early as Monday.
Missguided was bailed out last fall by financial firm Alteri Investors.
It has struggled with supply chain problems,
rising shipping costs and increased competition from competitors such as Boohoo and China’s Shein.
In recent weeks, Alteri has been trying to secure the sale of his fast fashion business.
Teneo insolvency professionals advise Alteri on strategic business choices and are understood to be willing to step in as administrators if a solvent solution cannot be found.
Any buyer would likely attempt to conduct a transaction via what is known as pre-packaging management, which allows an insolvent company to sell its assets to the bidder.
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police were called to Missguided’s Manchester headquarters after suppliers showed up earlier this week to demand late payments.
The JSK Fashions resource issued a liquidation petition on May 10.
A creditor – in this case a Missguided supplier – can apply to court to close a business if it is unable to pay its debts. The idea is to sell the company’s assets and pay the money to those who owe it.
You said that three suppliers to Missguided have warned that they are at risk of falling due on outstanding payments.
A Missguided spokesperson said: “Missguided is aware of action taken by some of the company’s creditors in recent days and is working urgently to address this matter. The process of identifying a buyer with required resources and statutes for business began in April and we expect to provide an update on the progress of this process. In the near future “.
The company was founded by Nitin Passi in 2009 and has grown into one of the largest online fast fashion players in the UK.
The brand later expanded to Europe, the United States, and Australia and now ships to more than 180 countries.
However, in the past few years, the company has struggled to turn a profit, and in December, Alteri announced layoffs as part of its turnaround plan.
Bassi resigned as CEO in April.
The company started as an online retailer before adding several brick-and-mortar stores, including a flagship store in Westfield Shopping Centre, east London in 2016. It has since closed all of its physical stores in the UK, saying it costs more than to run. Brought.
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