Reports are circulating that fashion brand Missguided has fallen into administration after clothing suppliers came knocking for the millions of pounds owed to them.
Advisory Firm Teneo has been called in to sell the business and assets after the brand failed to secure a bid from potential buyers, including Boohoo. According to Teneo Missguided will continue to trade in the background, whilst they search for a buyer.
It was not uncommon to hear about high street retailers falling into administration when the high streets were empty. However, during the pandemic, Missguided were reporting good figures, including that sales had increased by 200%. Though it seems not long ago, the fashion brand is now in financial trouble likely caused by inflation, supply chain expenses, and changes in consumer spending behaviours.
One of the most prominent changes in consumer behaviour is the desire for sustainable goods over fast fashion, and it is the younger shoppers – Missguided’s audience – who are heading that change. It seems that some remained optimistic about the rewards of increased ecommerce activity, without considering what could come next.
Who will buy Missguided?
There are a few fashion brands who have shown interest in buying Missguided including JD Sports and ASOS but Boohoo seems to be the most interested. Though Boohoo could certainly take on Missguided at this moment, without the right interventions, fast fashion brands could face problems in the changing landscape.
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