Online fashion brand Missguided collapses owing millions

Customers had complained that they weren’t receiving orders from the e-commerce retailer and just days later, the company revealed it had appointed administrators.

Online fashion giant Missguided has called in administrators after failing to secure a rescue bid, it’s reported.

The clothes company, which has been accused of not paying suppliers, is understood to be on the brink of collapse, The Sun reports.

It comes after furious shoppers blasted the retailer for not fulfilling orders.

The UK-based e-commerce company launched in 2009 by then 26-year-old founder Nitin Passi and has since expanded into the USA, France, Germany.

It has also boomed in Australia, with big name brands like The Iconic and Myer selling its wares.

However, now the website is unable to be accessed.

Previously, it had been understood that retail giant Boohoo was in talks to buy its rival in a pre-pack rescue deal.

However, The Guardian reports that administrators from Teneo were appointed on Monday after the company was issued with a winding-up petition.

Clothing suppliers are owed millions, the publication alleges.

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Missguided sold to Australian customers. Picture: AFP

A Missguided model.

Around 140 jobs are at risk.

It has also been claimed that police were called to the Missguided head office in Manchester after calls from angry suppliers.

Some of the online retailer’s UK and overseas suppliers told the paper they had not been paid for months.

One told The i that they had to sell wedding jewellery belonging to his mum and wife to raise £40,000 (A$70,000) for staff‘s wages.

The error message appearing on the Missguided website.

And shoppers are furious that the firm has failed to fulfil orders that were promised for next-day delivery.

The company was continuing to take orders on Monday, but sources said it was not clear if the group’s distribution partner, GXO, was continuing to handle those orders.

On Twitter, one customer wrote: “Ordered NDD (next day delivery) on the 26th and it‘s still not been dispatched yet. Please can you guys let me know where my parcel is!!”

Another added: “I‘m never ordering from you guys ever again. I paid for next day delivery YET my order is not even on its way.”

When Missguided replied to the tweet asking the customer to get in touch, she added: “I already did … no one seems to know what‘s going on.”

Another customer wrote: “I‘ve been messaging loads. It’s not fair that you’re taking orders from people and not even sending them out. People work hard to treat themselves and you’re just stealing money off them!”

And a fourth disgruntled shopper added: “Been waiting since 25th for 3 orders with next day delivery. Everyone gets the same reply, orders still processing.

“Not looking good, yet the website is still selling. It‘s a shocking way to treat customers.”

Anyone else having major issues with @Missguided@Missguided_help at the moment? Refunds taking weeks, next day delivery’s not coming next day? What’s going on?????

— Bethany 👑 (@Bettttyjo) May 28, 2022

Day 3: my next day delivery parcel from @Missguided is still not even PROCESSED, wtf is this behaviour

— ☠️ C ☠️ (@Chloeelorna) May 30, 2022

In May, Missguided told Retail Gazette: “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 provide an update on progress of that process in the near future.”

The Sun has contacted Missguided for comment.

Missguided was founded in 2009, and also sells its clothes on big fashion platforms like ASOS and Zalando.

This article originally appeared in The Sun and was reproduced here with permission.

Originally published as Online fashion brand Missguided collapses owing millions