Frasers Group, the retail empire founded by former Newcastle United owner Mike Ashley, has rescued fast fashion brand Missguided from collapse after going into administration. The company, which owns the likes of House of Fraser and Sports Direct, acquired the online retailer for a deal worth £20 million.
It comes after Missguided fell into administration on Monday, May 30, after failing to secure a last-minute buyer and reportedly owing its suppliers millions of pounds of outstanding payments. However on Wednesday, June 1, Frasers Group announced it has bought all of the related intellectual property of the retailer and sister brand Mennace.
The shopping empire confirmed that Missguided will be operated by administrators for a transition period of around eight weeks - after it appointed Teneo on Monday to lead it through administration. Missguided is then expected to be ran as a "standalone" brand within Ashley's Frasers Group, the retail tycoon said.
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Michael Murray, chief executive of Frasers Group and son-in-law of Mr Ashley, said: “We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of Frasers Group’s platform and our operational excellence. Missguided’s digital-first approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group.”
Missguided was founded by Nitin Passi in 2009 and since then went on to grow rapidly amid rising demand for online fashion. It employs around 330 staff from its Manchester base.
But in recent times, the company has struggled due to rising costs around supply, inflationary pressures and a drop in customer confidence in a competitive market. Before the intervention of Frasers Group, retailers including Boohoo, Asos and JD Sports had all been linked to rescue deals for Missguided.
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