Missguided has announced that they are laying-off 63 jobs as part of organizational restructuring. Moreover, the fashion retailer has also announced a shakeup of company’s management.
63 jobs are cut down
The Manchester based fashion retailer confirmed that their founder and CEO Nitin Passi has also stepped down. Nitin was heading the company since 2009. In a statement, Passi said he has “great pride” in what the company has achieved, but that it is the “right moment” for him to step away. Previously, the clothing giant had launched a 45-day consultation in March. The company originally stated that 140 job roles are at risk. After completion of their business review, the fashion retailer has confirmed that they are cutting down 63 jobs.
Missguided has confirmed that they had suffered increased costs arising from supply chain disruption, cost inflation and weakened customer demand. The pandemic has also negatively affected their sales. In addition, they have faced a stern competition from Shein which is a Chinese retailer. Companies like Shein are dominating the market through cost minimization approach.
Appointment of consulting firm to manage transition
In addition, the company has appointed consulting form Teneo to explore options for the business. Teneo recently led the sale of Studio Retail Group to Mike Ashley’s Frasers after they fell out of administration. “Having made good operational progress in recent months, Missguided today (20 April) confirms it has appointed Teneo to explore strategic options for this business. Significant progress in addressing stock issues, streamlining warehouse operations and reducing head office costs means that Missguided 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 maximize its potential.
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 stated this in their official statement.
Browse for job opportunities in fashion industry
Keep up with the latest employment news across UK at News