British Frasers Group has bought Missguided, after the online fashion retailer collapsed into administration last Monday. The retail group has acquired Missguided for 23.5 million euros. The fashion retailer is planned to continue operating as a standalone business.
Missguided was founded in 2009 in the UK and was a successful fashion retailer, with an online platform that was internationally active. However, the company had been struggling to keep up with strong competitors such as Boohoo and Shein.
In late 2021, the fashion platform sold a 50 percent stake of its business to Alteri, an investor that specializes in distressed businesses. This funding gave the platform liquidity during the supply chain disruption.
Collapse of Missguided
Last month, the retailer hired Teneo to help secure a new buyer. Competitors Boohoo and Shein showed interest, but Missguided was not able to close the deal. Instead, the platform was served with a winding up petition from suppliers who accused the brand of not paying them the millions they were owed.
‘Missguided collapsed into administration.’
It then collapsed into administration last Monday. The company’s employees consequently announced that they were seeking to sue the company, as they were affected by the collapse and said that their redundancy processes were not handled properly.
Acquisition worth €23.5 million
Now, Sports Direct-owner Frasers Group has acquired the fashion platform, including its menswear site Mennace, for 23.5 million euros (20 million pounds). Missguided will continue operating as a standalone business within the group.
‘Missguided will benefit from the scale of our platform.’
“We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of our platform and operational excellence. Missguided’s digital-first approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group”, said Michael Murray, Chief Executive at Frasers Group.