UK-based Frasers Group, parent company of Sports Direct, House of Fraser and Flannels, has reportedly acquired digital fashion retailer Missguided for $25.1 million, according to The Guardian. The deal includes certain intellectual property of both the Missguided and Mennace brands.
Missguided fell into administration on May 30, 2022 after being issued a winding-up petition by clothing suppliers. The fast fashion company first fell into financial difficulties in fall 2021 but was saved when private equity firm Alteri stepped in to buy a controlling stake. Sources told The Guardian that more than a dozen UK suppliers are still collectively owed millions of pounds for orders.
The company will continue to be operated under an administrator for approximately eight weeks following the completion of the deal, after which it will become a standalone business within the Frasers Group. About 80 of the company’s 140 jobs were made redundant when the company entered administration, a person familiar with the matter told The Guardian.
Frasers Group wasn’t the only company interested in Missguided. Administrators from Teneo reportedly attempted, but ultimately failed, to secure a last-minute rescue bid for the retailer. Additionally, there had been some speculation that Boohoo would acquire the company, but talks were ultimately unsuccessful.
Frasers Group CEO Michael Murray said that the company was “delighted to secure a long-term future for Missguided,” according to The Guardian. He also added that it would “benefit from the strength and scale of Frasers Group’s platform and our operational excellence.”
Frasers Group also has acquired other struggling brands including Evans Cycles, Jack Wills and Studio Retail. The deals mirror similar moves in the U.S., with companies including Authentic Brands Group and Brookfield Property Management picking up retailers like Reebok, Forever 21 and potentially Kohl’s.