Ashley snaps up fashion firm
MORE than 300 jobs at Greater Manchester fashion firm Missguided have been saved by Sports Direct owner Mike Ashley.
The company has been bought out of administration by the former Newcastle United owner’s Frasers Group.
Misguided was issued a winding-up petition last week by suppliers who are owed millions.
It comes after police were called to the retailer’s Trafford headquarters when suppliers turned up demanding overdue payments be made to them.
The online retailer – which employs around 330 staff – collapsed into administration on Monday. It was confirmed yesterday that Mr Ashley’s retail empire has snapped up the brand in a rescue deal.
Frasers Group, which also owns House of Fraser, said it has bought the intellectual property of the retailer and sister brand Mennace for around £20m. It said that Missguided will continue to be operated by administrators for a transition period of around eight weeks.
Frasers said it then intends to continue to run Missguided as a ‘standalone’ brand within its group.
Remaining assets of the group could still be sold separately as part of the administration.
Michael Murray, chief executive of Frasers Group, said: “We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of Frasers
Group’s platform and our operational excellence.
“Missguided’s digitalfirst approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group.”
Missguided was founded in 2009 by Nitin Passi and grew rapidly amid rising demand for online fashion.
However, the company was hit hard by surging supply costs, wider inflationary pressures and waning consumer confidence in the increasingly competitive market.
Rival retailers Boohoo, Asos and JD Sports had all been linked with potential rescue deals.