Tue, 31 May 2022 | ADMINISTRATION
Administrators are seeking a buyer for the business and assets of fast fashion retailer Missguided after the company fell into administration. Earlier this year, Teneo was hired to explore options for the business, including a sale, after the departure of founder and Chief Executive Nitin Passi.
This followed a period of difficult trading for the business. However, despite efforts to accelerate sale plans, a buyer could not be found. As a result, supplier JSK Fashions, which claims it is owed millions by the retailer, issued a winding-up petition and Teneo were appointed administrators.
Missguided will continue trading while the administrators seek a buyer for the brand and assets. Reports have indicated that acquisitive fast fashion retailer Boohoo has entered talks with Teneo over a deal for the company, with JD Sports and Asos also among those said to have registered interest.
Teneo Managing Director Gavin Maher said: “As we continue to see, the retail trading environment in the UK remains extremely challenging. The joint administrators will now seek to conclude a sale of the business and assets, for which there continues to be a high level of interest from a number of strategic buyers.”
Missguided operates a multi-channel offering, with a chain of high-street stores in addition to a strong e-commerce offering, which helped it to secure rapid growth after it was founded in 2009 and also enabled it to perform well in spite of the initial disruption of the COVID-19 pandemic.
However, supply chain issues, inflation and the reopening of high street competitors post-pandemic impacted the company’s performance during 2021 and 2022, while the overall popularity of fast-fashion has also waned as consumers increasingly seek more sustainable options.
In a statement, Teneo said: “Like many retailers, Missguided has suffered from increased supply chain costs, general cost inflation and softening consumer confidence in an increasingly competitive market.”
In the company’s latest available accounts at Companies House, covering the year ending March 29 2020, its turnover stood at £201.9 million, up from £186.8 million a year earlier. However, losses increased from £4.6 million in 2019 to £8.3 million. At the time, the company’s fixed assets were valued at £7.9 million with £37.5 million in current assets. Net liabilities, meanwhile, stood at £54.5 million.
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