Frasers Group strikes deal for Missguided

ONLINE fashion retailer Missguided has been bought out of administration by Mike Ashley’s Frasers Group for £20 million, according to reports.

Missguided, founded by Nitin Passi, went under last Monday (30) when it failed to secure a last-minute buyer to overcome its financial crisis. The company was issued with a winding-up petition by clothing suppliers who are owed millions of pounds, putting about 140 jobs at risk, it was reported last week.

Ashley’s firm said it acquired certain intellectual property of

Missguided Ltd and other related firms Mennace Ltd and Missguided (IP) Ltd, in a purchase funded from working capital.

Frasers owns the brands Sports Direct, House of Fraser and Flannels.

Following the deal, Missguided will be operated by the administrator under a transitional agreement for about eight weeks before it becomes a standalone business within the Frasers Group, media reports said.

Michael Murray, the chief executive of Frasers Group, said they were “delighted to secure a long-term future for Missguided”.

“Missguided’s digital-first approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group,” he said.

The firm, founded in 2009, got into financial difficulties last autumn. It was saved from collapse when the private equity firm Alteri stepped in. Passi subsequently left the company.

Missguided enjoyed rapid growth in its UK home market before expanding into the US, Australia, France and Germany.

Ashley recently bought struggling brands including Evans Cycles and the online specialist Studio Retail.