The fast-fashion company, Missguided, has fallen into administration, however, what does this mean for the masses of customers making orders each day?
According to the Mirror, the company has gone into administration after they failed to secure a last-minute buyer after months of uncertainty.
What is ‘going into administration’?
‘Going into administration’ is a business term and is when a company becomes insolvent and is put under the management of Licensed Insolvency Practitioners, basically, they have to be run by the administrators.
These administrators then take over the running of the company away from the executives and work towards saving the business. Or the administrators may then break down the business so creditors are paid at least some of the money they’re owed.
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Although it’s really not a great outcome for the company, it doesn’t necessarily mean the end of the company and several have been clawed back from extinction in various ways. For example, when Topshop went into admin it had to close its store but was bought by ASOS so the brand is still in existence.
What does it mean for Missguided?
Missguided was founded in 2009 by Nitin Passi and grew to prominence due to its popularity because of people’s want for fast fashion. However, things recently came crashing down for the company due to the rising supply costs, customer confidence, and wider inflation.
Now the Manchester-based company – which employs over 300 people in that city alone – has had to call in administrators Teneo after suppliers it owed millions of pounds to petitioned for it to be wound up.
According to the Mirror Teneo said: ‘There was keen interest from buyers wanting to snap up Missguided.’ This means it could claw its way back from being in administration.
What does this mean for customers?
As for customers who’ve recently bought items and are waiting for them, they shouldn’t worry too much at the moment as the company is still trading while Teneo speaks to interested buyers.