Mike Ashley’s Frasers offloads Missguided to Shein just one year after acquisition
Mike Ashley’s Frasers Group has offloaded the Missguided brand and its intellectual property to Chinese fast fashion giant Shein — just one year after it bought the online retailer.
As part of the deal, the Asian clothing behemoth will manage Missguided through Sumwon Studios, a joint venture it set up with the company’s founder, Nitin Passi, The Times reported.
Frasers Group will retain Missguided’s real estate and employees which have already been blended into the Sports Direct owners fashion division.
The retail powerhouse, which is now headed up by Ashley’s son-in-law Michael Murray, bought the online retailer last year for £20m after it fell into administration.
It formed part of a slew of similar acquisitions made by Frasers Group at the time, who has also acquired rival fast fashion sites I Saw It First and Missy Empire.
The company has also been building stakes in Boohoo and Asos. However, the sale of Missguided to Shein marks the Chinese brand’s first UK acquisition.
Murray told the outlet: “Retaining the combined Frasers fashion teams while rationalising our portfolio in this space to focus on fewer brands makes a lot of sense in the current climate.
“We are also excited about the discussions around further collaboration between Frasers Group and Shein.”
It comes as rumours swirl that Frasers Group is looking to snap up Topshop from Asos.
Over the weekend it emerged that the ailing online fashion retailer is exploring a sale of Topshop, less than three years after it acquired the high street brand from Philip Green’s collapsed Arcadia empire.
Notice of the sale could be announced as soon as Wednesday when the group publishes its delayed full-year results.
City PM has contacted Shein and Frasers Group for a comment.