Missguided went badly off course. Could this become a trend?

theguardian.com:

The collapse of fast fashion retailer Missguided has been a bin fire for suppliers, shoppers and investors. As administrators pore over the books this week, and creditors clamour for their money, the question being asked is: was its demise is a warning bell for the online rag trade, or just an isolated case of one company living up to its name?

Missguided’s creations were once paraded proudly around the pool on Love Island and promoted by a stream of influencers in marketing tie-ups. The Manchester-based firm, or at least its brand, is now destined to become part of Sports Direct founder Mike Ashley’s empire after his firm shelled out £20m for intellectual property rights.

Michael Murray, who has just taken the wheel as the new boss of Ashley’s Frasers Group, has a job on his hands to revive Missguided, his first acquisition since taking the hot seat.

He can cut costs by plugging Missguided into the Frasers warehouse system, and potentially its House of Fraser department stores, but he has taken a gamble on a fashion market that is clearly in flux.

Online fast fashion players enjoyed a boom during the pandemic as competition from the high street was almost wiped out for months at a time. Also, the cost of handling returned items was kept down as shoppers were more likely to keep what they bought, given the trend for less “fitted” looks.

Now party dresses and workwear are back on the agenda, shoppers are sending back more items again, and the costs of fabrics, delivery, warehouse labour and energy have all risen.

Fast-fashion shoppers are also facing a big squeeze on their spending power as bills rise. Under-30s’ discretionary income was down 26% in April compared with a year before, according to the latest Asda income tracker,