Missguided Admits It's Been Making Way Too Much Clothing

by: Lucy Jones | 5 months ago | News

Missguided’s London store. Image source

Missguided has been making way too much clothing. The online fast fashion retailer has blamed its enormous annual losses on over-expansion and over-production. In the 2017/18 financial year, Missguided’s annual losses surged to £46.7 million. Company representatives told the Financial Times that “premature” expansion of its management team was partly responsible for the decline in profits. Missguided also admitted that the physical stores it opened in 2016 and 2017 were “significantly too large”. The etailer plans to “clear remaining low-quality stock” and grow its ecommerce platform in an effort to recover from these losses.

Missguided’s revenue only grew by 4.9% in the last financial year. The year before that, the company reported a 75% growth rate.

“You don’t learn to walk by following rules, you learn by doing, falling over and getting back up again,” Missguided founder Nitin Passi wrote on Instagram. “Onwards and upwards. Very excited and confident for a successful 2019.”

Missguided is one of several online fast fashion retailers that are currently being investigated by the UK government. In 2017, the company came under fire for paying garment workers as little as £3 per hour. The government’s Environmental Audit Committee asked Missguided to appear in parliament recently to explain these exploitative practices. During the proceedings, the head of product quality and supply at Missguided defended the company’s ethics, saying that it had stopped working with 15 factories in Britain that underpay workers. 

The quality of fast fashion clothing and the fashion industry’s enormous waste problem are other key focuses of the government’s enquiry into the industry.

"Low quality £5 dresses aimed at young people are said to be made by workers on illegally low wages and are discarded almost instantly, causing mountains of non-recycled waste to pile up," Environmental Audit Committee chair Mary Creagh said.

“We want to know that [fast fashion brands] are fully compliant with employment law, that garments have a decent life-span, and that profit is not put before environmental damage."

Missguided’s admission that it is sitting on large quantities of poor quality clothing proves just how necessary the government’s investigation is. We’re not sure how the company plans to “clear” its “low-quality stock” but we hope that it also stops producing so many unsellable products in the first place.

Via the Financial Times.

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