Online retailer Boohoo will continue its approach to acquiring fast fashion brand Missguided despite the company falling into the hands of administrators.
However, the company will no longer be able to offer a pre-packaged rescue deal for the online retailer, due to its updated financial situation and will now be able to negotiate with newly formed Teneo administrators.
Teneo was called in after Missguided received a liquidation petition from suppliers who claim the retailer owes them millions of pounds. The administrator confirmed that Missguided will continue to negotiate during any sale process.
She is currently in negotiations with the investment company Alteri which owns 50% of Missguided.
Gavin Maher, Senior Managing Director 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.”
High street retailer JD Sports and online fashion company Asos have reportedly expressed interest in Missguided.
Any potential bailout deal that has a chance of being accepted is expected to be completed in the coming days, according to people familiar with the situation.
Authorities were called to the company’s Manchester headquarters last week over allegations made by Missguided suppliers.
Missguided was founded in 2009 by Nitin Passi and is best known for announcing the sale of a £1 bikini that many commentators saw as a marketing stunt in a crowded fast fashion market.
The company has about 330 employees and subcontracts the manufacture of garments to several companies. Some have indicated that they may be on the verge of collapse due to unpaid bills.