British fast fashion retailer Missguided has fallen into administration after failing to find a buyer.
The company called in administrators from Teneo on Monday after it was issued a winding-up order by supplier JSK Fashions which said the retailer owed it millions of pounds, Sky News reports.
“As we continue to see, the retail trading environment in the UK remains extremely challenging,” said Teneo managing director Gavin Maher, according to Sky.
He continued: “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.”
Teneo said the retailer will continue to trade while a search for a buyer continues.
Jobs at risk
Around 140 jobs are thought to be at risk, with one source telling the Guardian that more than 80 people have immediately been made redundant.
The news follows a report by The Times that said fast fashion group Boohoo had entered into talks with Teneo to buy Missguided. JD Sports and Asos are also thought to have shown interest, but a deal had not been made.
Missguided was founded by Nitin Pass in 2009 as an online-only digital ‘pure play’ retailer targeting 18-30-year-old customers.
The company shot to popularity in the UK thanks to its cheap prices and the rapid pace at which it churned out new collections. It also inked a deal with popular reality TV show Love Island to dress its contestants.
But Missguided's popularity waned in recent years as it faced growing online competition and increasing consumer demand for more sustainable fashion options.
In March, the retailer launched a “comprehensive restructure of the business” after being hit by supply chain disruptions, inflation and a drop in consumer demand over the previous 18 months.
A month later, founder and CEO Nitin Passi stepped down from his “day-to-day leadership” role as the business called in advisory firm Teneo to explore strategic options.