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Article

26 May 2022

Author:
Rob Hastings, inews.co.uk

UK: ‘Crisis-hit’ Missguided puts thousands of jobs at risk after allegedly ceasing payments to suppliers

"Missguided on brink of collapse as suppliers owed millions seek compulsory liquidation of fast-fashion giant", 26 May 2022

...Missguided is on the brink of collapse with millions owed to suppliers and thousands in danger of losing their jobs...

Office workers at the online brand have stopped answering the phones as angry factory owners continually call demanding payment...

Suppliers even turned up at the retailer’s headquarters in Manchester on Tuesday after being ignored. Missguided called the police and sent all its staff home.

Three factory owners told i they are at risk of going bankrupt and one claims he had to sell his wife’s jewellery to to pay staff...

It is claimed the brand...is continuing to attempt to place clothes orders with the same suppliers awaiting large sums...

In December, the company made redundancies and tried to stay afloat by selling a 50 per cent share of the business to private equity firm Alteri,...Soon afterwards, clothing suppliers were told they would have to cut their prices by 30 per cent, even on orders they had already delivered, according to multiple sources.

A factory owner is now seeking Missguided’s compulsory liquidation in an attempt to recover their money. Another supplier supporting this creditor’s legal petition, which is set to go before a court on 26 July, said Missguided is its sole customer and owes them more than £2million.

The supplier employs nearly 100 people in Leicester but had to shut its factory earlier this month when Missguided said it was temporarily ceasing payments during a restructure...

“They don’t understand the consequences of making suppliers work for margins of two to five per cent and then doing this,” they said. “The money we’re owed is not ours – it belongs to fabric mills, to trim suppliers, to payroll, to HMRC – but then overnight they say they’re not going to pay us...

A spokesperson for Missguided said: “Missguided is aware of the action being taken by certain creditors of the company in recent days, and is working urgently to address this. A process to identify a buyer with the required resources and platform for the business commenced in April and we expect to a provide an update on progress of that process in the near future.”

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