Frasers Group has bought fast-fashion business Missguided and plans to set it up as a standalone business within the group.
According to Retail Gazette, Frasers Group will pay £20 million to buy the collapsed omnichannel retailer out of administration after beating a competitive bid from online fashion retailer Boohoo.
Missguided was placed in administration on Monday owing suppliers millions of pounds. The Guardian reported at the time that more than 80 staff were immediately made redundant with another 260 jobs at risk if the company could not be salvaged.
Along with Missguided, Frasers Group bought sibling online menswear site Mennace.
“We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of FG’s platform and our operational excellence,” said Frasers Group CEO Michael Murray.
“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 online in 2009 by Nitin Passi, the daughter of an Indian immigrant who set up the high street supplier By Design in the 1960s. It later expanded into physical stores in the UK and overseas markets including in the Middle East and Asia.
Late last year Alteri, an investment company that specialises in distressed businesses, took a 50 per cent stake in Missguided in return for emergency funding. When founder Passi resigned as CEO, Alteri called in Teneo Financial Advisory to advise on long-term rescue options. Teneo was appointed administrator this week.
