IT never whipped up must-wear clothing at knockdown prices—but this week Missguided fell apart faster than a cheap outfit.
web-based retailer Was one of Britain’s biggest fashion brands thanks to a lucrative five-year sponsorship with TV love island and celebrity endorsements from the singer Nicole ScherzingerActress Pamela Andersonmore models sofia richie, Amber Rose more models jourdan dun,
But now Missguided’s awesome fall from grace – Declaring that it has exceeded millions in unpaid loans.
Eighty of the brand’s 330 employees were fired on Monday by a pre-recorded message as administrator Teneo tries to find a buyer for the company.
The first sign that all was not well with the launch of Love Island — which announced this month that it has dropped Missguided as its sponsor.
Instead, Celebrity Stylist Amy Bannerman — who has worked with singers dua lipa And Rita Ora — The contestants have signed up to put together pre-owned wardrobes from eBay when the show starts on Monday.
Just seven years ago Missguided was riding the pinnacle of a fast fashion wave, with profits peaking at £4.7 million thanks to the transformation of celebrity style into cheaply made clothing in a matter of weeks.
Manchester based company founded in 2009 Nitin Pasik39, a multi-millionaire clothing supplier with a £50,000 loan from his father, Danny.
The young entrepreneur soon became known for his love of the high life, his pink Lamborghini and an instinct to know what young women wanted to wear.
‘Business is almost over’
In 2014, Nitin had a “pinch me” moment when Nicole Scherzinger designed a range for the brand.
The following year, the firm opened two stores at the Westfield Stratford City Mall in East London and the Trafford Center in Manchester.
The brand’s biggest deal — grooming the glamorous contestants of Love Island — resulted in a 40 percent increase in sales during the show. ITV every night.
Nitin got the financial benefit of his success. For three years, and as recently as 2018, he was featured on the Sunday Times Rich List.
His £250 million fortune made him richer than veteran musicians Keith Richards, Ringo Starr and Sting. While profits soared, the brand’s reputation began to take a hit in early 2017.
a channel 4 Dispatch’s investigation found that suppliers were paying UK factory workers £3.25 an hour, when the minimum wage was £7.25 for workers over 25 – now £9.50.
In 2018, the brand was forced to do redundancies after losing 26 million pounds. At the time, Nitin told industry mag Drapers: “We have to turn our stock in six weeks.
“We weren’t clearing stock as quickly as possible, and this resulted in our customer seeing bad stock online or we were repurchasing old stock to clean it up.”
Everything I touched turned to gold when I started my career here. So making people redundant was shocking in a big way.
To minimize freefall, Nitin invited cameras into the company’s plush offices for the Channel 4 documentary Misguided: Made in Manchester.
He revealed on the show: “I almost lost the business. It was a very humbling experience. I was f***ing myself at points. It was emotionally draining. When I started my career here I Everything he touched turned to gold.
“So making people redundant was shocking in a big way.” To come back on top, the brand tried to sign the Love Island runner-up and influencer. Molly-May HagueHe was offered a £350,000 fee and an £80,000 Range Rover.
She turned them down and partnered with rival Pretty Little Thing, which twisted the knife by airing an ad during the first break in Missguided’s C4 documentary. The next year the situation went from bad to worse.
Kim Kardashian Just three hours after she posted a picture of herself in a gold Mugler limp dress, she criticized MissGuided for copying her look. She wrote on social media: “Fast fashion brand, can you wait to wear this before you wear it in real life?”
Within three hours MissGuided posted a photo of her copycat dress, captioned: “The devil works hard but missguided works hard @KimKardashian. You’ve only got a few days left for it to go online.”
‘Please pay me back’
But Kim got the last laugh as the label was ordered to spend £2.1 million for using her image.
The label’s senior designer Victoria Arnison defended its methods, telling Channel 4: “We would all love to drip in Gucci and Louis V but it’s not possible. So we take it and filter it and give it to our girls.” , not at that cost.”
But in recent years, fast fashion’s young target market has become increasingly concerned about how clothing is made responsibly and the impact they have on the environment.
In 2018 when Nitin dismissed a select committee hearing on sustainability in retail with the Labor chair, MPs were furious. Mary CraigGiving him a tick off.
The following year Missguided launched a £1 bikini advertised on Love Island – which caused an uproar over its lack of sustainable credentials.
Nitin told The Observer: “The £1 bikini price was put in place to generate interest and we’re not shy about it. We’re always close to the edge when it comes to marketing, but we’re going to put up with it. are comfortable because when it comes to the product there is no shortage.”
Please pay me back or return my stock. My life depends on it.
Commentators say the brand couldn’t compete with its rivals – Boohoo in particular. master Mahmud KamaniThe group has swallowed up rivals from Pretty Little Thing to Nasty Gal and Mishap.
down though lockdown Misguided’s profit jumped 40 percent last year due to supply chain issues and rising freight costs. A £53 million purchase from private equity firm Alteri in 2021 gave the company a little more time.
But last month, Nitin stepped down as CEO and the company announced it was looking for a buyer. This week employees of Missguided’s Chinese suppliers told the Eye newspaper how they feared for their lives as the company withheld £800,000 in invoices.
An unnamed owner described how he feared violent retaliation from his suppliers. Asked what they’d like to say to Missguided, the supplier said: “Please pay me back or return my stock. My life depends on it.”
Now employees have taken to Instagram to complain about their rude behavior by the brand.
One wrote: “Just made redundant in pre-recorded message by Missguided. Classy!”
And the customers are equally furious. On Sunday, some complained that the order they had paid for had not arrived.
While Missguided’s rivals have seen their revenues increase in recent years, there’s no doubt they’ll be keeping a keen eye on the label’s discovery.