The fashion retailer Missguided has had to call in administrators after failure to secure a rescue bid.
As reported by The Guardian, administrators from Teneo were appointed on Monday (May 30) after the company was issued with a winding-up petition by clothing suppliers who are owed millions of pounds.
About 140 jobs are thought to be at risk with one source saying more than 80 people had immediately been made redundant.
Brands like Boohoo, Asos and JD Sports had been in the running to buy Missguided, but a deal could not be finalised.
The administrators said Missguided would continue to trade while they seek to complete a sale of the business and assets.
Gavin Maher, a managing director of Teneo, said: “The retail trading environment in the UK remains extremely challenging,” but he added that Missguided had generated “a high level of interest from a number of strategic buyers”.
As of Monday Missguided was still accepting orders on their website.
Some of the online retailer’s UK and overseas suppliers told The Guardian they had not been paid for months and several said they had already taken a hit in December when they were asked for a 30% discount on orders already agreed.
One Leicester-based factory owner said he was owed more than £2m and had been forced to send his 90-plus workers home as he could not pay them.
He said that without payment he may be forced to call in administrators as he had not been paid since April.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here