Online fashion giant Missguided has reportedly called in the administrators. Reports earlier this week suggested the retailer could owe millions to suppliers.
The brand was expected to try and secure a rescue deal, but the Guardian says administrators were called in on Monday afternoon (May 30). It is thought a winding-up petition was issued by the firm's suppliers.
The national newspaper says around 140 jobs are thought to be at risk. It also claims 80 people were immediately made redundant after the news was announced.
Boohoo, which bought the Debenhams brand to continue online, was considered one of the forerunners to buy Missguided in a prepack deal. JD Sports and Asos were also thought to be in the running.
Administrators Teneo are expected to let Missguided trade as normal while they attempt to sell the business and its assets. Gavin Maher, a managing director of Teneo, told the Guardian: “The retail trading environment in the UK remains extremely challenging,” but he added that Missguided had generated “a high level of interest from a number of strategic buyers”.
According to newspaper reports in The i, police were called to Missguided's Manchester headquarters last week after suppliers turned up and demanded payments. A winding-up petition was submitted on May 10 by clothing supplier JKS Fashions.
Last autumn, the company was saved in a takeover by investment firm Alteri which announced redundancies in December as part of a turnaround plan. While last month, Missguided confirmed it was looking for a potential new buyer as founder Nitin Passi stepped down as chief executive.
