Fast-fashion giant Shein in talks to buy Missguided from Frasers Group
The potential deal, which was first reported by Sky News, would be Shein’s first purchase of a British brand.
Mike Ashley’s Frasers Group is in talks to sell Missguided to Chinese-founded fast-fashion giant Shein.
It is understood that Shein is hoping to secure a deal for the Manchester-based online retailer only 18 months after it was bought from administration by Frasers.
The potential deal, which was first reported by Sky News, would be Shein’s first acquisition of a British brand.
Shein, which was founded in China but is now based in Singapore, is currently valued at about £53 billion after a rapid expansion globally which has also seen it snap up rivals in different regions.
Frasers Group and Shein have both been contacted by the PA news agency.
Frasers, which also owns brands such as Sports Direct and House of Fraser, bought Missguided for about £20 million in a rescue deal last year.
The group is expected to sell Missguided’s brand and other intellectual property as part of the deal, although its head office is set to be retained by Frasers.
Shore Capital analyst Eleonora Dani said: “Shein’s prospective acquisition of Missguided signals intensifying competition in the UK online fashion market.
“For Missguided, which recently navigated financial distress only to be rescued from administration by Frasers Group, the transaction would serve as a liquidity event, providing an infusion of capital that enables brand stabilisation and growth under the umbrella of a globally recognised name.
“Additionally, the transaction accentuates the evolving international scope of the online fashion retail sector, further amplifying competitive pressures in an already saturated market.”
Frasers Group shares edge 0.7% lower after early trading on Monday.
