JD Sports enters race to snap up Missguided
RETAIL giant JD Sports has been tipped as a possible suitor for online fashion business Missguided which last week appointed advisers to seek potential buyers.
Missguided has been hit by soaring costs and difficult trading which sources said had hit sales at the business.
Financial consultancy Teneo has been appointed to look at options, understood to include seeking strategic partners as well as possible buyers.
Teneo’s restructuring arm is understood to have been examining ways to reduce costs at the retailer.
Bosses at JD Sports, which has emerged in recent years as one of the most successful retailers on the high street, are understood to be mulling a possible swoop.
Industry sources said the sportswear chain’s interest is at a very early stage.
Missguided founder Nitin Passi has stepped down as chief executive, but remains on the board. Passi’s family owns half of the business. Last year, he sold a 50 per cent stake to Alteri Investors, backed by US private equity giant Apollo.
Online retailers performed well during the pandemic as many shops were forced to close. But sources said the reopening of stores including Primark, H&M and New Look had hit sales and made it ‘difficult to work out where the new normal for brands like Missguided’ will end up.
Fast fashion rival Boohoo and Mike Ashley’s retail group Frasers are also said to be possible contenders.