'Jobs at risk' at Missguided as raft of issues hit firm
Problems are mounting for UK fashion retailer Missguided. The troubled Manchester-based brand has admitted around 140 jobs are at risk following supply chain disruptions, inflation and, worryingly, a drop in customer demand.
The company said it has launched a 45-day consultation period as part of a "comprehensive restructure of the business”.
A Missguided statement, seen by BusinessLive, said: “The fashion industry has had a tough 18 months with increased costs arising from supply chain disruption, cost inflation and weakened customer demand arising from the pandemic.
“Missguided has not been immune to those challenges and at the end of 2021, with the help of external consultants, began a review of its structure in the light of market conditions.”
It added: “Missguided is acutely aware of the disruption this will cause to its colleagues. It’s committed to offering support to its people, as it implements the proposed restructure as quickly as possible to provide certainty to its colleagues.”
It had hoped a rescue deal secured with turnaround specialist Alteri Investors would ease its immediate problems. Missguided sold a 50% stake to Alteri, backed by US private equity giant Apollo, towards the end of 2021, but its problems continue, resulting in the latest statement.
Missguided was founded in 2009 as an online-only retailer and fashion brand by CEO Nitin Passi. Currently, it serves “over four million active, 18–30-year-old customers in over 180 countries globally”. Although its ambitious opening of flagships in key malls such as Westfield and Bluewater proved a failure, as well as its webstore it now also has physical locations in a large number of Asda stores.
In the year to March 2021 it achieved sales of £287 million, with the UK and US being its two largest markets. But profitability has been a problem, it recording a pre-tax loss of £8.2m in March 2020.
The company is due to file its next set of accounts by the end of this month.
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