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.
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It comes after furious shoppers blasted the retailer for not fulfilling orders.
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 tonight 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.
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 for staff’s wages.
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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.”
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.
What are my rights if my order doesn’t turn up?
Shoppers are being advised to consider ordering from elsewhere while things are still up in the air at Missguided.
Moneycomms personal finance expert Andrew Hagger said: “There’s no sense in ordering now, even if the website is still up and running,” he said.
“The risk simply isn’t worth it, no matter what discounts are being offered.”
If you have placed an order with a shop that does go into administration, you’ll be placed in a line of creditors who are owed money from the business.
But this list will also include lenders and key suppliers, and everyone will have to paid out of any money that’s left in the business.
Hagger said: “In cases like this it’s often unlikely that retail customers orders will be honoured, as administrators will – by law – have to first pay out what money is left (if any) to secured creditors – i.e. lenders or key suppliers.”
If you are waiting on an order, you can ask your card provider to reimburse you under section 75 of the consumer credit act.
This only applies to customer who paid by credit card and for orders which cost more than £100.
Write to your card provider asking for the full amount you paid. If your claim is unsuccessful you can ask the Financial Ombudsman Service to look at your case.
If you used a Visa or Mastercard debit card to make your purchase, you could also ask for a “charge back” whereby you ask your card provider for the money back.
Stormy waters for top fashion chain
Missguided was founded in 2009 by Nitin Passi.
It has previously enjoyed huge success, particularly during the pandemic.
As Covid lockdowns stopped shoppers from hitting the high street, the company enjoyed rapid growth in the UK and expanded into the US, Australia, France and Germany.
However, it has struggled since physical stores reopened. It’s understood the situation has been exacerbated by the cost of living crisis.
Last autumn, the online retailer was saved from collapse when the retail investor Alteri, backed by the investment firm Apollo, stepped in and announced redundancies in December as part of a turnaround plan.
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