- Through the deal, the group acquires its intellectual property and brands
- It comes just a year and a half after it was bought by Mike Ashley’s Frasers Group
Fast fashion giant Shein has made its first acquisition in the UK, buying women’s fashion retailer Missguided for an undisclosed sum.
The Singapore-based company said it plans to “reinvigorate” the brand, which was taken out of administration by Mike Ashley’s Frasers Group just a year and a half ago.
The deal will see the retailer purchase Missguided’s intellectual property and brands.
The deal will see Shein buy Missguided’s intellectual property and brands
But the Manchester-based company’s staff and real estate will remain with Frasers, which has folded them into its fashion division.
Frasers boss Michael Murray said the company had already established a foothold in the online world of women’s fashion with the brands I Saw It First and Missy Empire.
He said: “Retaining the combined Frasers fashion teams while streamlining our portfolio in this area to focus on fewer brands makes a lot of sense in the current climate.”
“We are also pleased about ongoing discussions regarding further collaboration between Frasers Group and Shein.”
Shein is valued at around £53bn as it has expanded globally and bought up many of its competitors.
The company announced that it will license the brand to Sumwon Studios, a joint venture with its founder Nitin Passi.
The brand’s products will be available on Shein’s websites and Missguided.com.
Last December, Shein pledged to invest £12 million to improve standards at its supplier factories after admitting working hours at two sites were breaking rules.
The group said an independent investigation launched after allegations of labor abuses in a Channel 4 documentary found that staff at two of its Chinese sites were working longer hours than local regulations allowed.
Donald Tang, Chief Executive Officer of Shein, said: “The joint venture we have entered into ushers in a new format of partnerships for Shein and is part of our unwavering commitment to meeting customer demand.”
“Shein aims to reinvigorate the Missguided brand, leverage its unique brand personality and drive its global growth through Shein’s on-demand production model, unparalleled e-commerce expertise and global reach.”
Following the sale, Frasers Group shares rose 1.45 per cent to 806.50p in morning trade on Monday.
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