Frasers Group has made an unexpected move by acquiring online fast-fashion brand Missguided, which recently entered administration. In a deal worth £20 million, Frasers Group has acquired certain intellectual property of Missguided Limited, Mennace Limited, and Missguided (IP) Limited. Mennace is the menswear label under Missguided.

This acquisition by Frasers Group may come as a surprise considering its previous focus on higher-priced brands. However, the company has shown interest in the mass and mid-market segments before, and it had missed opportunities to acquire fast-fashion labels during the pandemic.

Once the deal is completed, Missguided will be operated by the administrators for approximately eight weeks under a transitional agreement. After this period, the plan is for Missguided to operate as an independent business within the Frasers Group.

Michael Murray, CEO of Frasers Group, expressed his delight in securing a long-term future for Missguided. He believes that the brand will benefit from Frasers Group’s platform and operational excellence. Murray also highlighted Missguided’s expertise in digital-first fashion trends, hinting at the potential integration of the brand’s knowledge into Frasers Group’s physical stores, including House of Fraser.

Although Boohoo Group was initially seen as the frontrunner to acquire Missguided, it remains unknown whether they were outbid or voluntarily withdrew from the bidding process. Boohoo Group’s ownership of several fast-fashion brands targeting the youth market may have presented challenges in differentiating Missguided.

It is currently unclear whether Missguided will retain its Manchester headquarters and continue operating with its existing team. The administrators had previously made job cuts, and the acquisition might not be favorable news for the brand’s suppliers, who were owed substantial amounts of money and played a role in the business’s collapse. Additionally, Alteri, the brand’s backer, may face significant losses after acquiring a stake for over £50 million last year.

[Useful links]:
1. Frasers Group saves Missguided from administration
2. Frasers Group acquires certain IP of Missguided for £20m