Online fashion company Missguided is collapsing into administration

Fast fashion company Missguided has fallen into administration after failing to find a last-minute buyer.

The company brought in administrators from Teneo after receiving a liquidation petition from suppliers who owed millions of pounds.

Insolvency specialists are now looking to sell the business and assets of the retailer, which employs around 330 people from its Manchester base.

Missguided was founded in 2009 by Nitin Passi and has grown rapidly in response to growing online fashion demand.

However, the company has been hit hard by soaring supply costs, greater inflationary pressures and declining consumer confidence in an increasingly competitive market.

Boohoo was in talks to buy the business in a pre-pack administration deal, while Asos and JD Sports were also reportedly interested.

Directors said the company would continue to operate while it sought to sell assets and stressed there had been a “high level of interest”.

Gavin Maher, of Teneo, said: “As we continue to see, the retail environment in the UK remains extremely challenging.

“The joint administrators will now seek to complete a sale of the business and assets, for which there continues to be a high level of interest from a number of strategic buyers.

“We thank all employees and other key stakeholders for their support during this difficult time.”

Last fall, Missguided was rescued by a takeover by investment firm Alteri, which announced layoffs in December as part of a turnaround plan.

However, last month the retailer confirmed it was looking for a potential new buyer as founder Mr Passi stepped down as chief executive amid continued financial pressure.

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