Online fashion retailer Missguided has called in administrators after failing to secure a rescue bid.

Administrators from Teneo were appointed on Monday after the company was issued with a winding-up petition by clothing suppliers who are owed millions of pounds.

Teneo’s Gavin Maher 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.”

About 140 jobs are thought to be at risk, with The Guardian citing a source as saying more than 80 people had immediately been made redundant.

Teneo said Missguided will continue to trade while a buyer of the business is sought.

Boohoo, a larger online fashion retailer, had been in talks to buy Missguided in a prepack administration deal.

Chelsea FC confirms sale to group led by Todd Boehly and Clearlake Capital

British Airways check-in staff at Heathrow to be balloted for strike action in pay dispute

Ukraine war: Oil prices surge as EU meets to discuss Russian energy ban

JD Sports and ASOS are also thought to have shown some interest, but a deal was not made.

Missguided was founded by Nitin Passi in 2009 when he was just 26, and grew into one of Britain’s biggest online-led fashion retailers, competing with the likes of ASOS and Boohoo.

Its journey was not without serious difficulties, however, including in 2017 when one of its Leicester-based suppliers was accused after an undercover investigation of paying workers less than the minimum wage.

In 2019, it faced scrutiny over the sale of a £1 bikini, but responded by saying that the clothing item had “cost us more to produce than £1 and we’re absorbing the costs so we can offer it at an incredible price as a gift to our customers”.

Missguided did open a handful of physical stores, including one at London’s Westfield shopping centre, but decided to close them after deciding that their operating losses were too large to justify.

Related posts:

Businesses plead for taxpayer aid to be extended in line with Freedom Day delay Businesses face ‘confusing and contradictory advice’ about reopening Who are the new owners of Newcastle United? ‘It’s a dying trade’: How the departure of migrant workers has left a shortage of butchers Diminishing hopes for strong economic rebound as UK’s recovery lags behind global rivals Burberry shares fall as lack of tourists dents luxury brand’s sales Sad day for UK science and technology as Johnson Matthey announces battery materials exit AstraZeneca eyes ‘modest’ profit from COVID-19 vaccine Increase in price of mixers pushes up cost of gin and tonic Slower wage growth begs the question: Who will bear the inevitable pain of surging inflation? Immigration rules relaxed for care workers amid staff shortages Broughton lines up Wall Street and sports titans to back fully funded Chelsea bid