Missguided fashion chain on the verge of collapse

Online fashion retailer Missguided is on the brink of collapse after being issued with a winding-up petition by creditors.

It is understood the business could call in administrators as early as Monday.

Missguided was rescued last autumn by the finance firm Alteri Investors.

It has suffered from supply chain problems, rising freight costs and increasing competition.

In recent weeks Alteri has been trying to secure a sale of the fast-fashion business.

Insolvency specialists Teneo are advising Alteri on strategic options for the business and it is understood they are ready to step in as administrators if a solvent solution cannot be found.

Any buyer may likely try to do a deal via what is known as a pre-pack administration.

According to a report in the i, police were called to Missguided's Manchester headquarters after suppliers turned up earlier this week demanding overdue payments.

Supplier JSK Fashions issued a winding up petition on 10 May.

The newspaper said three suppliers for Missguided warned they are at risk of going under due to outstanding payments.

A Missguided spokesperson said: "Missguided is aware of the action being taken by certain creditors of the company in recent days and is working urgently to address this. A process to identify a buyer with the required resources and platform for the business commenced in April and we expect to provide an update on progress of that process in the near future."

The business was founded by Nitin Passi in 2009 and grew to become one of the UK's biggest online fashion players. But in the last few years the business has struggled to make a profit.

Mr Passi stepped down as chief executive in April.