Online fashion giant Missguided has reportedly appealed to administrators. Reports earlier this week suggested the retailer may owe its suppliers millions.
The brand was expected to try to secure a bailout deal, but the Guardian says the administrators were called on Monday afternoon (May 30). A liquidation petition is believed to have been filed by the company’s suppliers.
The national newspaper indicates that around 140 jobs would be threatened. He also claims that 80 people were immediately fired after the news broke.
Boohoo, which bought the Debenhams brand to continue online, was seen as one of the frontrunners to buy Missguided as part of a pre-package deal. JD Sports and Asos were also thought to be in the running.
Teneo directors are expected to let Missguided negotiate as normal while they attempt to sell the company and its assets. Gavin Maher, chief executive of Teneo, told the Guardian: “The retail environment in the UK remains extremely challenging”, but added that Missguided had received “a high level of interest from a number of strategic buyers”.
According to newspaper reports in The i, police were called to Missguided headquarters in Manchester last week after vendors showed up and demanded payments. A liquidation petition was filed on May 10 by clothing supplier JKS Fashions.
Last fall, the company was saved by a takeover by the investment company Alteri, which announced layoffs in December as part of a recovery plan. While last month Missguided confirmed it was looking for a potential new buyer when founder Nitin Passi stepped down as chief executive.