Fast-fashion giant Shein has made its first acquisition in the UK, buying women’s fashion retailer Missguided for an undisclosed amount.
The Singapore-based business said it plans to ‘reignite’ the brand, which was bought out of administration just a year and a half ago by Mike Ashley’s Frasers Group.
The deal will see the retailer buy Missguided’s intellectual property and trademarks.
The deal will see the Shein buy Missguided’s intellectual property and trademarks
But the Manchester-based company’s staff and real estate will stay with Frasers, which has folded them into its fashion division.
Frasers boss Michael Murray said the company’s I Saw It First and Missy Empire brands already give it a foothold in the online women’s fashion world.
He said: ‘Retaining the combined Frasers fashion teams whilst rationalising our portfolio in this space to focus on fewer brands makes a lot of sense in the current climate.
‘We are also excited about the ongoing discussions around further collaboration between Frasers Group and Shein.’
Shein is valued at around £53billion, having expanded around the world and bought many of its rivals.
The company said it will license the brand to Sumwon Studios, a joint venture with its founder, Nitin Passi.
The brand’s products will be available through Shein’s sites and on Missguided.com.
Last December, Shein vowed to invest £12million to improve standards at its supplier factories after admitting that working hours at two sites breached rules.
The group said an independent investigation, launched after allegations over labour abuse made in a Channel 4 documentary, had uncovered that employees at two of its Chinese sites were working hours that were longer than allowed under local regulations.
Donald Tang, executive chairman of Shein, said: ‘The joint venture we have entered ushers in a new format of partnerships for Shein, as part of our unwavering commitment to meet customer demand.
‘Shein aims to reignite the Missguided brand, capitalising on its unique brand personality, and fuelling its global growth through Shein’s on-demand production model, unparalleled e-commerce expertise and global reach.’
Following the sale, Frasers Group shares are up 1.45 per cent to 806.50p in morning trading on Monday.
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