The founder of Manchester-based Missguided has revealed his “great sadness” at stepping down as chief executive as 63 jobs were cut at the iconic clothing firm.
News that Nitin Passi was leaving his role at the company was announced today, at the same time as the firm said they were scrapping 63 jobs and appointing consulting firm Teneo to “explore strategic options for the business”.
Mr Passi founded Missguided in 2009, selling a 50 per cent stake of the Trafford-based firm to Alteri Investors towards the end of 2021. According to BusinessLive, the London-based investor, which is backed by private equity giant Apollo Global Management, also has stakes in Lancashire-based Bensons for Beds.
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Teneo recently led the sale of Studio Retail Group to Mike Ashley’s Frasers Group after it had fallen into administration. Writing on LinkedIn, Mr Passi said: “When I set up Missguided back in 2009 with a small loan from my family, I had no idea about how impactful the brand would become.
“In a little over 13 years, working alongside some of the most talented people in fashion, we’ve created a business that has had real traction. We serve almost 4 million customers in over 120 countries worldwide.
“We’ve been a social media pioneer, creating a loyal following of over 10 million fans worldwide, and our marketing at times has been nothing short of legendary. And while the numbers are remarkable, more importantly, we’ve used the platform we ‘ve created to champion women, inspiring them through the fashion we provide, to be themselves and achieve whatever they want.
“That said, it won’t take me to tell you that the last year has been tough – sadly, it’s been difficult for many good fashion retailers. But, stepping back from those short-term challenges, I have great pride in what we ‘ve built.
“Despite that pride, this is however a difficult message for me to share. Having navigated a recent investment process, it is with great sadness, that I’ve decided that now is the right time for me to step down as the CEO of Missguided , and to create space in my life for new challenges.
“As you all know, Missguided has been my life and my passion for more than a decade. And while I still have a significant stake in the business and I intend to remain on the holding company board, you’ll understand the wrench I feel at leaving the day-to-day leadership of the business I founded.
“Endings are hard – but they’re necessary to create new beginnings. Building Missguided to be the brand it is today has been the joy of my life, but I also know I haven’t done it alone. I want to say thank you to all of you, all the team members, past and present, all our suppliers, and all the customers who have been part of this amazing entrepreneurial journey.”
In its most recently available accounts, for the 12 months to the end of March 2020, the company achieved a turnover of £201.9m and pre-tax losses of £8.2m. The Trafford Park-headquartered company is due to file its next set of accounts by the end of June.
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