Missguided seeks emergency funds amid supply chain crisis
Missguided has since called reports of the emergency funds 'incorrect speculation'
Following the report from the Times, a spokesperson for Missguided told Retail Sector: “The weekend media reports regarding Missguided are not accurate – Rothschild continues to manage our investment process.
“While we continue to talk to a range of parties as part of that process, this kind of incorrect speculation is more than disappointing and disrespectful to our partners and staff.”
Missguided has reportedly sought emergency funds to keep it afloat amid the ongoing supply chain crisis, reports from The Sunday Times suggest.
In a bid to secure the funding, the online retailer was said to be in talks with restructuring experts AlixPartners. The Telegraph added that a lifeline of £50m was reportedly chased in a bid to secure the business.
It comes as the group has been hit by a rise in shipping costs as well as a shortage of labour.
According to The Times, founder Nitin Passi said Missguided had “been talking to a range of parties and declined to comment further”.
News of the rescue comes weeks after reports that JD Sports was eyeing a takeover of the group, after the group hired Rothschild to help sell the firm.
Following the report from the Times, a spokesperson for Missguided told Retail Sector: “The weekend media reports regarding Missguided are not accurate – Rothschild continues to manage our investment process.
“While we continue to talk to a range of parties as part of that process, this kind of incorrect speculation is more than disappointing and disrespectful to our partners and staff.”
Previously, JD Sports was reportedly considering an investment into Missguided which could potentially lead to an “outright takeover” of the online fashion business, according to Sky News.
It was thought to be one business amongst a “number of parties” that were in talks to take over the brand.
The group’s proposal was reportedly said to involve the acquisition of a controlling interest in Missguided, although Sky said it remained “unclear” on whether founder Nitin Passi was “keen” on a majority stake takeover.
Sources told Sky that discussions between the online retailer and potential investors were “not yet on the brink of a conclusion”, and that “different structures were being evaluated by the fashion site”, with the online retailer reportedly in talks with a “small number” of other prospective investors.
Missguided and AlixPartners have been contacted for comment.
