Boohoo exploring offer for Missguided

Fast fashion retailer Boohoo is exploring a pre-pack rescue deal to buy Missguided, according to The Times.

The newspaper revealed on Saturday that Boohoo has entered into exclusivity talks with Missguided’s advisers at Teneo and that a deal could be struck by the end of today, 30 May.

However, sources warned that a rescue was not finalised and did not have details on how many jobs could be protected, or if Boohoo was restricting its interest to the brand rather than the entire business.

The news follows reports that Missguided's had lined up administrators after being issued with a winding-up petition by creditors. Advisory firm Teneo was said to step in as administrators if the business could not be sold.

Alteri Investors, which saved Missguided from collapse last autumn, has been looking at options to sell the company over the past weeks. Last month Nitin Passi, who founded Missguided in 2009, stepped down from the company.

Maria Malone, fashion business expert and educator, told BBC Radio 5 Wake up to Money: "The company had strong links with cultural icons like Love Island, which has a massive impact on their sales. We, of course, know what is now happening with Love Island this year and that they're actually looking towards pre-loved and pre-owned clothing - they're turning their back on fast-fashion. I think that's the big problem; the customer has changed.

"The most important thing to do when selling clothing is to have a strong relationship with those who are supplying you with the goods. That contact means that you expect a great service and in return you pay them promptly. If that relationship is broken and the supplier isn't paid, it can spiral."