Online fashion giant Misguided is on the verge of calling off administrators as business nears a truce.
The textile company has been accused of not paying suppliers and is facing collapse.
According to a closing petition was issued on 10 May against Missguided by supplier JSK Fashion Retail Gazette.
And factory owners are claiming they have millions of pounds out of pocket and are even facing collapse.
Police were reportedly called to the company’s head office in Manchester because of the suppliers’ allegations.
An angry supplier told The Eye that he had to sell his wife’s wedding jewelry and mother too to raise £40,000 to pay employees’ wages.
They claimed they would go bust if Misguided went into liquidation.
Teneo is understood to be on standby if the company is unable to find a buyer to save it from going down.
According to reports, JD Sports and Sheen may bid to take over the company.
Missguided told the Retail Gazette: “Misguided is aware of the actions taken in recent days by some of the company’s creditors, and is working urgently to address this.
“The process of identifying a buyer with the necessary resources and platform for the business began in April and we look forward to providing an update on the progress of that process in the near future.”
This follows 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.
Last summer, Missguided announced that it would sell clothing 100 Asda stores across the UK,
More to follow…
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