Expert comment: Missguided falls into administration
Dr Gordon Fletcher, retail expert from the University of Salford Business School, comments as Manchester-based online fast fashion retailer Missguided falls into administration.
"With online fashion retailer Missguided falling into administration there is a new retail reality.
“Until so recently a leading light of the young online upstart fast fashion there has been warning signals since December when the founder, Nitin Passi, gave up significant control of the company in a deal that brought a cash injection from equity capital firm Alteri.
“Last month Passi also gave up control as the company's CEO. The company will continue to retail under the supervision of administrators until a buyer can be found. The company has had a controversial history and unwillingly has had a central role in raising the public debate about the ethics of fast fashion in terms of environmental sustainability as well as the wages that suppliers pay their workers in order to hit the expected price points of consumers.
“But the desire of consumers to enjoy post-lockdown experiences including high street shopping coupled with an increasing squeeze on household disposable income has doubled the crisis in which Missguided has found itself. Fashion, and especially fast fashion, can be a marginal business when people look for ways to save money. The result is renewed interest in more sustainable consumption practice including going 'vintage' as well as upcycling and repurposing old wardrobe items.”
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