Channel 4 recently brought a brand new docuseries about Missguided, but why did the fashion brand lose £26 million?
Missguided often pops up on our Instagram and Facebook feeds. For the first time, a thorough documentary reveals some unknown stories of success and failure of the popular clothing company.
The Channel 4 documentary goes behind the scenes of the fast-fashion brand as it follows the creative team based in Manchester.
Quite naturally, viewers at home want to know some juicy details about the brand. One of the burning questions that many have is why the brand lost £26 million.
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Why did Missguided lose £26 million?
Missguided lost the whopping amount of £26 million during 2017/2018 because it faced financial difficulties.
According to a report from The Sun, the fashion brand recorded a savage loss of £46.7 million after tax for 2017/2018.
Retail Gazette (original via Daily Mail) reported that Missguided’s sales dropped significantly, leading to many cuts and redundancies.
The fashion brand’s profits drop from £381,000 in 2016 to a £1.45 million loss in December 2017 despite online sales growing 40 percent in the same period.
“The tough market has led to sales growth that’s lower than we need it to be and our investments in margin and other costs means that missing our annual profit target is inevitable,” Missguided’s founder Nitin Passi explained.
Nitin added:
The business has doubled its number of employees in two years and as a result some teams are less lean then they need to be. This is a horrible process but it is something that we have to face into.
Channel 4: Inside Missguided
After going through a financial turmoil, Missguided’s CEO Nitin aims to bring back the brand’s previous glory and make it attractive for customers once again.
As part of their strategy, Missguided has employed Gemma Collins and introduced pink Lamborghinis and Missguided-printed Rolls Royce cars.
The brand also uses the advantage of online influencers to help promote the brand to millions of social media followers.
As the Channel 4 docuseries reveal, Missguided aims to spread the importance of diversity and that fashion fits everyone no matter of their size or age.
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Viewers react to the docuseries
It’s safe to say that the documentary has received some mixed reactions. Some viewers like the docuseries, however, others have urged viewers to skip it.
There are still a couple of episodes left so Inside Missguided might win over more viewers in the coming weeks.
WATCH INSIDE MISSGUIDED WEDNESDAYS ON CHANNEL 4 AT 10 PM
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