UK-based online fashion brand Missguided has been sold to e-commerce giant Shein, marking Shein's first purchase of a British fashion brand. The deal, for an undisclosed sum, includes the intellectual property and trademarks of Missguided. Shein will produce and sell Missguided products on its website and Missguided.com. The company, valued at around £53 billion, has expanded globally and acquired several rivals. Shein aims to fuel Missguided's global growth through its on-demand production model and e-commerce expertise.
Retaining workers and real estate
Frasers Group, owned by Mike Ashley, will retain Missguided's workers and real estate, which will become part of the company's fashion division. Frasers Group Chief Executive Michael Murray hinted at collaboration between Frasers and Shein, stating that retaining the combined fashion teams while focusing on fewer brands makes sense in the current climate.
Acquisition after troubled times
The sale comes just over a year after Frasers Group bought Missguided, which had collapsed into administration due to outstanding payments to suppliers. Frasers Group acquired the intellectual property of Missguided and sister brand Mennace for around £20 million. The group's pre-tax profits almost doubled in the year to April 2022, reaching £660.7 million, as sales rose by 15.8% to £5.6 billion.
A brief history of Missguided
Founded in 2009 by Nitin Passi with a £50,000 loan from his father, Missguided quickly became a major player in the fashion industry alongside competitors like Boohoo, Nasty Gal, and Pretty Little Thing.
Other recent retail acquisitions
In a separate deal, UK sofa chain ScS was sold to Poltronesofa for £100 million. And leading British lifestyle retailer FatFace was acquired by Next for £115.2 million.
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