Missguided reportedly reviewing restructure options following supply chain crisis
Fast fashion retailer Missguided is reportedly working with restructuring experts at AlixPartners to review funding options as supply chain issues continue to cause disruption to the retail industry.
According to The Sunday Times, Missguided has been talking to a number of parties including AlixPartners about securing a cash injection. Missguided and other online fashion retailers have recently suffered from rising shipping prices and labour shortages that have prevented them from sourcing stock in tight timeframes, leading to inflated costs.
A Missguided spokesman denied the claims however, commenting: “The weekend media reports regarding Missguided are not accurate – Rothschild continues to manage our investment process. While we continue to talk to a range of parties as part of that process, this kind of incorrect speculation is more than disappointing and disrespectful to our partners and staff.”
The statement however does not deny that the business is actively seeking fresh investment.
Last month it was reported that JD Sports is eyeing an investment in the fast fashion retailer, which could lead to a full take-over of the business. Sources said that talks had not reached the point of an imminent conclusion and that, while JD Sports seemed keen on taking a majority stake, it wasn't clear if its founder Passi wanted to cede control.
Passi founded Missguided in Manchester in 2009 (around three years after larger rival Boohoo was also established in the city) when he was just 26.
Missguided has encountered challenges in recent years and a move into physical retail with its own standalone stores was reversed after it incurred heavy losses. However it recently concluded a deal with ASDA for its clothes to be sold in 100 of its stores and has also recently expanded into the growing beauty and home markets. Recent reports suggest the business could achieve sales of close to £400 million in the coming year.