Missguided CEO steps down as 63 redundancies are announced
Manchester-based fast-fashion retailer, Missguided, has announced 63 redundancies on the same day it has revealed that CEO Nitin Passi is standing down, and the appointment of adviser Teneo to explore strategic options for the company.
The job losses are a reduction on the 140 roles that were placed at risk in a redundancy programme announced in March this year. This has been achieved through redeployment and a voluntary redundancy programme.
Missguided said the appointment of Teneo is as a result of it having made good operational progress in recent months.
It added that significant progress in addressing stock issues, streamlining warehouse operations and reducing head office costs means it is now in a position to accelerate its plans to find a strategic partner with the infrastructure and platform to deliver the next stage in its turnaround and maximise its potential.
In December 2021, Missguided sold a 50% stake to Alteri Investors.
Having navigated Missguided through its recent fundraising and strategic review, founder Nitin Passi will step down as CEO but remain on the retailer’s holding company board to represent his family’s ongoing stake in the business.
Missguided chair, Ian Gray, said: “Missguided has made substantial operational progress since receiving new investment at the end of 2021, placing us on a sounder footing in a very short space of time and I want to thank everyone for their hard work.
“That work means we’re now in a position to accelerate plans to explore strategic options for the business.”
Ian also thanked Nitin for the brand he’d built from scratch.
“Missguided is one of the most vibrant brands in young women’s fashion and that’s down to more than a decade of hard work by Nitin.
“I recognise it’s never easy for founders to decide to step away from day-to-day leadership of the businesses they create, but I respect Nitin’s decision and look forward to his continued guidance as a member of the holding company board.”
Nitin Passi said: “When I set up Missguided back in 2009 with a small loan from my family, I had no idea about the impact the brand would make, and I have great pride in what we’ve built.
“But this is now the right moment to step away from day-to-day leadership as the business explores strategic partnership options for Missguided.
“I look forward to making a continued contribution on Missguided’s holding company board.”
Missguided achieved a turnover of £201.9m and pre-tax losses of £8.2m for the year to March 2021.
Nitin Passi started the online store in a factory in Manchester in 2009.
