Fashion giant Missguided is teetering on the brink of collapse after being issued a winding-up petition by suppliers owed millions.
The online retailer is understood to be lining up administrators from Teneo for a potential insolvency process.
Police were called to the retailer’s Manchester headquarters after suppliers turned up earlier this week demanding overdue payments be made, according to reports by The i.
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On May 10, a winding-up petition was issued against Missguided by clothing supplier JKS Fashions.
Creditors have applied for compulsory liquidation and a Manchester court is due to hear the case in July.
The newspaper said three suppliers for Missguided warned they are at risk of going bankrupt due to outstanding payments.
Last autumn, the company was saved in a takeover by investment firm Alteri which announced redundancies in December as part of a turnaround plan.
Last month, Missguided confirmed it was looking for a potential new buyer as founder Nitin Passi stepped down as chief executive.
It hired Teneo to assess strategic options at the time and it is now understood that the corporate advisory firm would oversee any insolvency process.
A spokesman for the company 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 a provide an update on progress of that process in the near future.”