British fast fashion retailer Missguided has filed for bankruptcy after being unable to find a buyer.
The company brought in liquidators from consultancy Teneo on Monday after receiving a liquidation order from supplier JSK Fashions saying the retailer owed it millions of pounds, Sky News reported.
“As we can see, the retail environment in the UK remains extremely challenging,” said Teneo CEO Gavin Maher, according to Sky.
“The joint administrators will now seek to complete a sale of the business and assets, which continue to attract strong interest from a number of strategic buyers,” Maher added.
According to Teneo, the retail company will continue to operate while the search for a buyer continues.
Jobs are at risk
Around 140 jobs are said to be at risk, with a source telling the Guardians stated that more than 80 people had been immediately released.
The news follows a report by Times, according to which fast fashion group Boohoo has started talks with Teneo about buying Missguided. JD Sports and Asos are also said to have expressed an interest; however, a deal was not completed.
Missguided was founded by Nitin Pass in 2009 as an online-only retailer targeting an 18-30 year old clientele.
The company quickly became popular in the UK thanks to its affordable prices and the rapid pace at which it launched new collections. It also signed a deal with the popular reality TV show Love Island to dress its contestants.
In recent years, however, Missguided has lost popularity as the company faced growing online competition and increasing consumer demand for more sustainable fashion.
In March, the retailer embarked on a “major corporate restructuring” after being impacted by supply chain disruptions, inflation and a slump in consumer demand over the past 18 months.
A month later, founder and CEO Nitin Passi stepped down from day-to-day operations and the company brought in consulting firm Teneo to explore strategic options.
This translated article originally appeared on FashionUnited.uk.