Reportedly, there is a potential sale of the Missguided clothing brand, a development that is just one year after Frasers Group acquired the retailer.
The acquisition occurred in the wake of the fashion retailer’s collapse into administration, with a purchase price of £20 million.
It is suggested that any potential agreement would involve Shein acquiring the Missguided brand along with other intellectual property.
However, it will allow the brand’s head office to remain under the ownership of Frasers Group.
Both Frasers Group and Shein have refrained from providing official comments on the ongoing discussions.
Leading Fashion Retailer
Missguided was established by Nitin Passi in 2009 and subsequently evolved into one of the UK’s leading online fashion entities.
Despite its early success, it encountered challenges related to supply chain disruptions, surging freight expenses, and intensifying competition from rivals. Ultimately, Frasers Group assumed ownership of the brand.
Frasers Group has experienced substantial growth by acquiring distressed brands, including Game, Evans Cycles, Jack Wills, and Sofa.com.
Although Mike Ashley no longer serves as the Chief Executive of Frasers Group, he still retains a majority stake.
On the other hand, Shein has solidified its position as a global powerhouse in the realm of fast fashion.
The company witnessed a surge in sales during the Covid-19 pandemic, primarily driven by the increased online shopping during lockdowns.
Earlier this year, Shein’s market valuation stood at approximately $66 billion, although it represented a decline from a prior valuation of roughly $100 billion.
There have been speculations that Shein is considering a listing of its shares in the United States.
Missguided Acquisition: Shein Forced Labour Allegations
However, in May, a group of US lawmakers called for an investigation into Shein amid forced labour allegations.
People from the Chinese Uyghur Muslims were reportedly forced to work in the production of some of the company products.
The US and UK governments, as well as human rights groups, have accused China of committing crimes against humanity with regard to the Uyghur people.
However, in response to these allegations, Shein asserted its “zero tolerance for forced labour.”
It also emphasised the strict adherence of its suppliers to a code of conduct aligned with the International Labour Organisation.