Missguided is closing its loss-making flagship in Westfield Stratford City at the end of February, Drapers can exclusively reveal.
The Manchester-based fast fashion business opened the 20,000 sq ft store, its first foray into bricks and mortar, in November 2016.
Drapers understands the business had two years left on the lease but was able to negotiate with Westfield to exit early to mitigate the losses generated by the store.
All 70 members of staff, the most of whom work part time, are in consultation.
Missguided’s second store in Bluewater shopping centre, which opened in June 2017, will continue to operate as normal.
The business will open its first international franchise store at Dubai Mall on 1 February.
In August Drapers exclusively revealed that Missguided was reassessing its UK retail footprint and was looking to scale back its UK stores to focus on its core online business.
In its most recent financial results Missguided reported an operating loss of £37.7m for the 53-week period to 1 April 2018, from a profit of £580,000 in 2016/17. Turnover was up 4.9% to £215.9m.
The business cited “premature” investment in fresh management and stores that were “significantly too large” for an “extremely challenging” year. It added that, although stores had “strong absolute revenue, it was insufficient to cover their operating costs”.
In December founder Nitin Passi told Drapers: “2017/18 was a tough but necessary year for the business. We’ve addressed the areas we needed to and have already turned the bottom line around. The business is rebooted, refocused and re-energised, and we’re excited to return to growth in 2019.”