Fashion retailer Missguided ‘on brink of collapse with suppliers left out of pocket’

ONLINE fashion giant Missguided is on the brink of calling in administrators as the business is close to toppling.

The clothes company has been accused of not paying suppliers and is facing collapse.

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Missguided is reportedly on the brink of collapse

A winding up petition was issued against Missguided on May 10 by supplier JSK Fashions, according to Retail Gazette.

And factory owners are claiming they are millions of pounds out of pocket and facing going under too.

The police were reportedly called into the company’s head office in Manchester because of suppliers’ accusations.

One angry supplier told The i that they had to sell their wife’s wedding jewelery and mum’s too to raise £40,000 to pay for staff’s wages.

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They claimed they would go bust if Missguided goes into liquidation.

Teneo is understood to be on stand by should the company be unable to find a buyer to save it from going under.

JD Sports and Shein are expected to make bids to take over the company, according to reports.

Missguided told the 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 the progress of that process in the near future.”

When The Sun checked Missguided’s website online, it was still open for taking orders.

We’ve asked Missguided whether customers’ orders will be impacted in any way.

It follows on from December when the company made a series of redundancies to try to keep afloat.

It also sold 50% of the business to private equity firm Alteri.

Missguided was founded in 2009, and also sells its clothes on big fashion platforms like ASOS and Zalando.

It employs around 400 people in Manchester, according to the Manchester Evening News.

In the summer of last year, Missguided announced it would be selling clothes in 100 Asda stores across the UK.

It’s not the only online retailer who has been close to going bust recently.

Studio Retail appointed administrators in February, leaving thousands of customers waiting for their orders.

It was saved from going bust after Frasers Group bought it out.

What are your shopping rights?

If you’re planning on getting your haul in from Missguided, Moneycomms personal finance expert Andrew Hagger said to think twice.

“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.”

It means that while the online shop is reportedly experiencing troubles, it’s best to get your clothes elsewhere.

That’s because if Missguided does go under and you’ve been left waiting for your order, you won’t be top of the administrators’ list for getting your money back, Mr 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 – ie lenders or key suppliers.”

In cases where shops collapse and you’re waiting on an order, you can ask your card provider to reimburse you under section 75 of the consumer credit act.

But that 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.

You could also secure a refund if you paid using a Visa or Mastercard debit card.

This is called a “chargeback” and you have to submit a claim within 120 days of your purchase.

It’s not a legal requirement, but it’s worth a go if you have been left out of pocket.

Customers who paid through a third-party should contact that payment provider first.

For example, Paypal will let you open a dispute within 180 days of making a purchase.

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