UK-based fashion brand and digital retailer Missguided has confirmed it has appointed administrators from Teneo Financial Advisory.
In a statement on its website, the company said: “Daniel James Mark Smith, Benjamin Dymant and Daniel Butters, each Insolvency Practitioners of Teneo Financial Advisory Limited, were appointed Joint Administrators of Missguided Limited and Mennace Limited (the “companies”) on 30 May 2022.
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“The affairs, business and property of the companies are being managed by the Joint Administrators. The Joint Administrators act as agents of the companies without personal liability.”
The Guardian reported that the appointment comes after Missguided failed to secure a rescue bid.
The move is expected to put approximately 140 jobs at risk, with a source saying that more than 80 people have been made redundant with immediate effect.
Missguided is reported to owe ‘millions of pounds’ to clothing suppliers, who have issued a winding-up petition, while some of its creditors have also applied for compulsory liquidation.
Teneo managing director Gavin Maher said Missguided had generated ‘a high level of interest from a number of strategic buyers’, despite the UK’s ‘extremely challenging’ retail environment.
The company has continued to take orders but it is unclear if the group’s distribution parnter, GXO, is handling these orders.
Founded in 2009 by Nitin Passi, Missguided experienced quick growth during the Covid-19 pandemic but started struggling when physical stores were allowed to reopen.
Passi stepped down as the retailer’s chief executive last month.
Online fashion group Boohoo was recently reported to be in discussions to take charge of Missguided in a prepack administration deal.
British sports apparel retailer JD Sports and online fashion and cosmetic retailer Asos are also thought to be interested in the business.
Late last year, Missguided secured a rescue deal from Alteri Investors, under which Alteri took over the retailer’s existing debt and 50% of its equity.
