Frasers Group has made a last-minute acquisition of Missguided after the women’s fashion retailer fell into administration earlier this week.
The group, which was formerly known as Sports Direct under then-boss Mike Ashely, told investors on Wednesday it had bought ‘certain intellectual property’ of Missguided for a cash consideration of £20million.
Upon completion of the deal, Missguided is expected to be operated by its administrator Teneo for a transitional period of eight weeks before then operating as a standalone business within Frasers Group.
Missguided has been able to continue to trade while a buyer was sought
Missguided plunged into administration earlier this week, putting 330 jobs at risk, after failing to agree a rescue deal from potential suitors Boohoo, JD Sports or Asos.
The struggling firm had received a winding-up petition by some of its suppliers, who are still due payments worth millions of pounds.
It had become wildly popular after advertising its range on celebrity dating show Love Island, and thrived during the pandemic before its sales were hit by the reopening of physical stores and the cost of living crisis.
Manchester-based Missguided company made headlines with its £1 bikini three years ago and has grown rapidly to become one of the UK’s largest retailers.
The acquisition of Missguided marks Frasers Group’s first under the leadership of chief executive Michael Murray, who took over from Mr Ashley last month.
Mr Murray said: ‘We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of FG’s platform and our operational excellence.
‘Missguided’s digital-first approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group.’
Frasers Group shares climbed 0.72 per cent, or 5p, to 696p in early trading.
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