Missguided online clothing retailer is on the verge of collapse after clothing suppliers to whom they owe millions of pounds have issued a liquidation petition.
The fast-track fashion company, which broke the news with its £ 1 bikini three years ago, is thought to be on the verge of calling on Teneo insolvency administrators on Monday.
Police were called to the Manchester headquarters of the retailer after vendors showed up earlier this week to demand that overdue payments be made, the newspaper reported and.
On May 10, a liquidation petition was issued against Missguided by Manchester-based clothing supplier JKS Fashions. Creditors have filed for bankruptcy and a Manchester court is due to hear the case in July.
The newspaper said three Missguided vendors warned they were at risk of bankruptcy due to pending payments.
The Guardian understands that some UK and overseas providers have not been charged 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 Passi, left the post of CEO. JD Sports and China-backed fashion retailer Shein have linked possible deals.
Missguided hired Teneo to evaluate strategic options last month and it is now understood that the business advisory firm would oversee any insolvency proceedings.
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The company said: “Missguided is aware of the actions that some of the company’s creditors are taking in the last few days, and is working hard to resolve them.
“A process to identify a buyer with the resources and platform needed for the business began in April and we look forward to providing an update on the progress of that process in the near future.”
Founded in 2009 by Passi, Missguided was among a small number of fashion brands on the Internet that have been successful at a time when the traditional street is on its knees. The company enjoyed rapid growth in the UK and expanded into the US, Australia, France and Germany, but has recently had problems. The £ 1 bikini was sold at a loss as a marketing ploy.