Online fast fashion retailer Missguided has fallen into the hands of administrators after failing to find a rescue deal.

The e-commerce retailer has appointed Teneo Financial Advisory to lead the administration process and search for a new buyer for the business and its assets.

The collapse of the business comes after the firm was issued with a winding-up petition by suppliers who are reportedly owed millions of pounds.

The UK-based company had been the subject of interest from potential buyers including rival fast fashion retailers Boohoo, ASOS and Shein in recent weeks, however no rescue deal was finalised, leading the company to call in the administrators.

Around 140 jobs are thought to be at risk out of a workforce of 340, the Guardian reported this morning, with a source telling the paper that 80 staff had been made redundant as soon as the announcement was made.

Announcing the move this morning, administrators Teneo said the business will continue to trade while the administrators seek a complete sale of the business and its assets.

The statement said that like many retailers, Missguided has suffered from increased supply chain costs, general cost inflation and softening consumer confidence in a competitive market.

Founded by Nitin Passi in 2009, Missguided has grown to reach around 3 million active customers in more than 180 countries worldwide.

Passi stepped down last month as the company’s chief executive as Teneo was appointed to explore options for Missguided’s future.

The company sold a 50 per cent stake last year to investor Alteri, which specialises in distressed firms.

Gavin Maher, senior managing director at Teneo, said: “As we continue to see, the retail trading environment in the UK remains extremely challenging. The Joint Administrators will now seek to conclude a sale of the business and assets, for which there continues to be a high level of interest from a number of strategic buyers.

He added: “We thank all employees and other key stakeholders for their support at this difficult time.”

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