Negotiations Between Missguided and Shein
Reports have emerged indicating that Mike Ashley’s Frasers Group is in negotiations regarding the sale of Missguided, an online clothing label. While discussions have been ongoing for several weeks, there is no definitive confirmation of a sale at this point.
Shein’s First British Fashion Brand Acquisition
If this deal materializes, it would mark Shein’s first acquisition of a British fashion brand. Shein, founded in China in 2012 and now headquartered in Singapore, has recently been valued between £53 billion and £80 billion. These talks suggest a strategic move into the British fashion market.
Mike Ashley’s Rescuing of Missguided
Mike Ashley’s Frasers Group came to the rescue of Missguided in June of the previous year when the online fashion retailer had fallen into administration. The purchase, valued at approximately £20 million, included the intellectual property rights of Missguided and its sister brand, Mennace. The brand was confirmed to continue operations under administrators for a transition period of around eight weeks.
Missguided’s Turbulent Journey
Founded in 2009 by Nitin Passi, Missguided experienced rapid growth during the early years of online fashion retail. However, it faced challenges such as surging supply costs, broader inflationary pressures, and a highly competitive market. The company’s fall into administration resulted from an inability to secure a last-minute buyer amid mounting debts to suppliers.
Frasers Group’s Expanding Portfolio
Frasers Group, under the leadership of Michael Murray, has been expanding its portfolio of brands and businesses, which now includes a diverse range from Agent Provocateur to Sofa.com, Gieves & Hawkes, and Flannels. The group’s pre-tax profits nearly doubled from £335.6 million to £660.7 million in the year ending April, alongside a 15.8% increase in sales to £5.6 billion. The acquisition of Missguided was seen as a strategic move to secure the brand’s long-term future.
A Potential Deal on the Horizon
While discussions about the potential acquisition of Missguided by Shein are ongoing, this development marks a significant point in the brand’s journey, from facing administration to the possibility of being part of a global fashion giant. The fashion industry will be watching closely as this story continues to unfold.
Mike Ashley’s empire, which includes Sports Direct and other retail chains, has been diversifying and expanding, solidifying his presence in various sectors. This potential sale further reflects the dynamic nature of the fashion and retail industry.
Whose brand is Missguided?
Established by Nitin Passi in 2009, Missguided is a British online fashion store that caters to women aged 16 to 35. It’s part of a cluster of rapid-fashion digital retailers that have originated from the Manchester and Lancashire regions, joining the likes of Boohoo and Miss Pap.
Is Shein cheap or expensive?
Shein is a budget-friendly option, but its quality and ethical practices have stirred controversy. Shopping at Shein often aligns with the principle of “you get what you pay for.” While some of their garments are of decent quality, others are crafted using inexpensive materials that tend to deteriorate after just a few washes.
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