Mike Ashley in talks to sell Missguided to Shein
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Chinese fashion giant Shein has reportedly been in talks with Mike Ashley’s Frasers Group to acquire the UK-based fashion platform Missguided.
Sky News said the two companies have been negotiating for several weeks. The move came about a year after Missguided was brought out of administration by Frasers Group for £20 million. The deal, if it happens, will mark Shein’s first acquisition of a UK label.
The source said the acquisition will likely include Missguided’s brand and its intellectual property, while Frasers Group will retain its head office.
Missguided was founded in 2009 by Nitin Passi, the daughter of an Indian immigrant who set up the high street supplier By Design in the 1960s. The company grew its presence in the UK and overseas markets, including the Middle East and Asia. Investment company Alteri acquired a 50 percent stake in Missguided in 2021 before the fashion company went into administration last year as it failed to pay its debts.
Shein has recently announced it will bring the company’s ESG roadmap pledge to $155 million, following the $70 million committed last April.
Questions & Answers
Q.What is the background to Missguided being sold by Frasers Group?
What is the background to Missguided being sold by Frasers Group?
Frasers Group acquired Missguided from administration last year for £20 million. This came after investment company Alteri bought a 50 percent stake in 2021, and the fashion company then failed to pay its debts.
Q.What parts of Missguided would Shein acquire if the deal goes through?
What parts of Missguided would Shein acquire if the deal goes through?
The acquisition would likely include Missguided's brand and its intellectual property. Frasers Group, the current owner, is expected to retain Missguided's head office as part of the arrangement.
Q.Where does Missguided currently operate?
Where does Missguided currently operate?
Missguided grew its presence in the UK market. The company also expanded its operations into various overseas markets, including regions within the Middle East and Asia.