Missguided are one of the biggest brands who capitalised on the fast fashion boom in the early 2010s. However, in recent years the business failed to keep up with bigger players in the industry, such as Boohoo and ASOS. The collapse of the brand has also exposed the mistreatment of workers both within its own operations and supply chain. The latter has been used to explain the fall of the brand as stories have since circulated that suppliers’ have been left millions out of pocket. Despite continuing to sell the clothes that were produced for them, Missguided failed to pay multiple factory owners what they owed them. Revelations of mistreatment of their own staff have surfaced in the form of the way that they learnt of the company’s fate. It is understood that employees were made redundant via a pre-recorded conference call in which sacked staff were muted for.
It was announced on Wednesday 1 June that the business was bought out of administration by Mike Ashley’s Frasers Group for £20 million. While this may be good news for the company, the larger problems that the whole ordeal has uncovered can no longer be ignored. While a business must be profitable, it must also be responsible.
In addition to the poor environmental rating that the company has received, the recent lack of care that Missguided have demonstrated for their own employees and their supply chain workforce is not acceptable responsible business practice. With investors, stakeholders, and consumers all beginning to become more conscious about where they invest, how a business is perceived and what they purchase, it is becoming more and more pressing for businesses to see beyond profits and demonstrate a sense of care for people and the planet.
To avoid having your own missguided supply chain approach and learn more about the human rights issues that businesses need to be aware of, you might like to attend our new Business and Human Rights Online Training and Support Programme. This online programme will provide you with the information you need to understand human rights and business issues, as well as a practical guide on how to comply with key laws and standards.
If you would like support in developing a Supply Chain Due Diligence standard get in touch with the Ardea team via hello@ardeainternational.com