Missguided CEO steps down as advisory firm brought in
Following Passi’s departure, the business is now looking for a partner that can ‘bring infrastructure Missguided needs’ to deliver the next stage of its progress
Missguided’s founder, Nitin Passi, is set to step down from his role as chief executive officer (CEO) after the womenswear retailer appointed Teneo, an advisory firm, to explore “strategic options” for its future.
However, Passi will remain on Missguided’s holding company board to represent his family’s ongoing stake in the business.
Meanwhile, with Teneo’s assistance, the business is now looking for a partner that can “bring infrastructure Missguided needs to deliver the next stage of its progress”.
At the end of last year, the online retailer launched a review of its business structure which concluded it “needs to align its costs to better match its current performance”, amid supply chain disruption, cost inflation and lowered customer demand.
Consequently, Missguided began a 45-day consultation process and put 140 jobs at risk in February as part of its proposed restructure. The consultation came to an end this week and the figure has reportedly dropped to 63 following a redeployment and a voluntary redundancy programme.
Due to “significant progress in addressing stock issues, streamlining warehouse operations and reducing head office costs”, Missguided can now accelerate plans to find a “strategic partner” to deliver the next stage in its turnaround and “maximise its potential”.
Ian Gray, Missguided chair, said: “Missguided has made substantial operational progress since receiving new investment at the end of 2021, placing us on a sounder footing in a very short space of time and I want to thank everyone for their hard work. That work means we’re now in a position to accelerate plans to explore strategic options for the business.”
“I recognise it’s never easy for founders to decide to step away from day-to-day leadership of the businesses they create, but I respect Nitin’s decision and look forward to his continued guidance as a member of the holding company board.”
Passi added: “When I set up Missguided back in 2009 with a small loan from my family, I had no idea about the impact the brand would make, and I have great pride in what we’ve built. But this is now the right moment to step away from day-to-day leadership as the business explores strategic partnership options.”
