Missguided announced the loss of 63 jobs alongside a reshuffle in the company’s management.
The Manchester-based fashion retailer has confirmed that its founder and chief executive Nitin Passi, who has run the business since 2009, has stepped down. In a statement, Passi said he was “very proud” of what the company had accomplished, but it was the “right time” for him to step down.
Consulting firm Teneo has been appointed to ‘explore strategic options for the business’, reports BusinessLive .
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Chairman Ian Gray called Missguided “one of the fastest growing brands in young women’s fashion” and said the company had made “substantial operational progress” since 2021.
In March, BusinessLive reported that Missguided had launched a 45-day consultation that put 140 jobs at risk. Teneo recently led the sale of Studio Retail Group to Mike Ashley’s Frasers Group after it fell into administration.
Missguided was founded by Nitin Passi in 2009 and sold a 50% stake to Alteri Investors towards the end of 2021. The London-based investor, which is itself backed by private equity giant Apollo Global Management, also holds stakes in Lancashire-headquartered Bensons. for the beds.
In a statement, Missguided said: “Having made good operational progress in recent months, Missguided confirms today (April 20) that it has appointed Teneo to explore strategic options for this business.
“Significant progress in resolving inventory issues, streamlining warehouse operations and reducing head office costs means that Missguided is now able to accelerate its plans to find a strategic partner with the infrastructure and platform to deliver the next stage of its turnaround and maximize its potential.
“After guiding Missguided through its recent fundraising and strategic review, founder Nitin Passi will step down as CEO but will remain on the retailer’s holding company board to represent his family’s continued involvement in the business.”
Chairman Ian Gray said: “Missguided has made substantial operational progress since receiving new investment at the end of 2021, putting us on a stronger footing in a very short time and I want to thank everyone for their hard work. This work means that we are now able to accelerate plans to explore strategic options for the company.
“Missguided is one of the fastest growing brands in young women’s fashion and that’s thanks to more than a decade of hard work by Nitin. I recognize that it’s never easy for founders to decide to step away from the day-to-day direction of the businesses they build, but I respect Nitin’s decision and look forward to his continued guidance as a member of the holding company’s Board of Directors.”
Mr Passi added: “When I started Missguided in 2009 with a small loan from my family, I had no idea the impact the brand would have, and I’m very proud of what we’ve built.
“But now is a good time to step away from day-to-day leadership as the company explores strategic partnership options for Missguided. I look forward to continuing to contribute to the board of Missguided’s holding company. “
In its latest available accounts, for the 12 months to the end of March 2020, the company had sales of £201.9 million and pre-tax losses of £8.2 million. The Trafford Park-based company is due to file its next set of accounts by the end of June.