- Shein acquires Missguided UK.
- Aims to revitalize the brand.
- Deal includes trademarks and investment.
For an undisclosed sum, fast-fashion behemoth Shein has acquired women’s fashion retailer Missguided, marking its first purchase in the United Kingdom.
The Singapore-based company stated that it intends to “reignite” the brand, which Mike Ashley’s Frasers Group acquired from administration just 15 months ago.
The Acquisition Deal
The agreement entails the retailer acquiring the intellectual property and trademarks of Missguided.
Retaining Fashion Teams
Frasers will keep the Manchester organization’s staff and property since it absorbed them into its fashion department.
Frasers CEO Michael Murray says I Saw It First and Missy Empire helped the company enter online women’s fashion.
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In the current economic climate, it is logical to retain the combined fashion teams of Frasers while streamlining our portfolio in this sector to concentrate on a smaller number of brands, he said.
“We are also enthusiastic about the ongoing discussions between Frasers Group and Shein regarding additional collaboration.”
Shein is valued at approximately £53 billion, having grown internationally and acquired a number of its competitors.
The firm announced that Sumwon Studios, a joint venture with creator Nitin Passi, will licence the brand.
Shein’s websites and Missguided.com will distribute the brand’s products.
Investment and Commitment
Last December, Shein pledged £12 million to improve working conditions at two supplier plants after admitting improper hours.
The organisation stated that an independent investigation, which was initiated in response to allegations of labour exploitation in a Channel 4 documentary, revealed that workers at two of its Chinese facilities exceeded the legal working hours permitted by local regulations.
“As part of our unwavering commitment to meet customer demand, the joint venture we have entered into inaugurates a new format of partnerships for Shein,” said Donald Tang, executive chairman of Shein.
Shein’s objective is to reestablish the Missguided brand by leveraging its distinct brand identity and driving its worldwide expansion by leveraging its on-demand production model, unmatched e-commerce proficiency, and extensive international presence.
In early Monday morning trading, Frasers Group shares are up 1.45% to 806.50p subsequent to the sale.
