Missguided administrator Teneo has revealed that the Manchester fast-fashion favourite owed more than £80m when it collapsed into administration in May, before being rescued by Mike Ashley’s Frasers Group for £20m.
New documents filed with Companies House have also confirmed that Missguided’s suppliers are expected to be paid less than two per cent of the £30m+ they are owed. The documents say that the business will pay out less than 1.7p in the pound to factory owners.
Prior to its collapse Missguided’s debts had risen from £57m in 2021, and Teneo added that there was “no prospect” of any funds being returned to unsecured creditors, who are owed £46m in total.
In the administrator’s report Teneo said: “As with many online retailers, [Missguided] experienced strong growth during lockdowns as a result of Covid-19 with revenue peaking in 2021 at £287m.
“However, following the easing of Covid-19 lockdown restrictions, the group experienced a softening of customer demand reflecting a rebalancing in the sector between online and physical retail shopping habits.
“In addition to this, the business also experienced cost inflation, particularly in USA distribution costs, which increased by £24m (88%) in FY21.”