Missguided suppliers expected to be paid less than 2% owed

The group - which collapsed in May before being purchased by Frasers Group for £20m - will pay less than 1.7p in the pound to factory owners supplying its main brand, according to an administrators’ report sent to creditors this week. This is despite it collapsing with long-term debts of more than £80m. 

According to The Guardian, administrators at advisory firm Teneo were also considering legal action to pursue repayment of a £569,000 loan made by Misguided founder Nitin Passi’s founder Rajib Passi. He is, however, not expected to be repaid any of the £24.7m he loaned to the group to support it in recent years. 

The firm’s private equity backer Alteri, meanwhile, will receive at least £18m of the £58m it put into the online retailer. The tax authorities, meanwhile, will receive £530,000 in respect of VAT, employers’ national insurance and other payments. 

Missguided was initially saved from collapse last autumn when Alteri stepped in, buying a controlling stake and taking seats on the board, with Nitin Passi subsequently leaving the company. But the deal failed to stem the group’s problems. 

Towards the end of May this year, suppliers to Missguided have filed an official complaint to the Insolvency Service over what campaigners say was “a reckless approach” by the company’s private equity.