According to a report by Sky News, JD Sports is currently in discussions to acquire Missguided, an online fashion retailer. While neither company has officially confirmed the talks, it is believed that JD Sports is among a select group of potential investors considering an investment in Missguided. The details of the potential investment have not been disclosed, but it is speculated that JD Sports may be interested in purchasing a majority stake in the company. However, the willingness of Missguided’s chief, Nitin Passi, to give up control is uncertain. As the talks continue, Missguided is also considering other options, such as a partnership with another company.

Founded by Nitin Passi twelve years ago, Missguided quickly established itself as a prominent player in the fast fashion online market in the UK. Though the company has faced losses in the past, it experienced a 40% growth in sales, reaching approximately £290 million in the year ending March. Once pandemic-related costs were excluded, Missguided delivered a profitable performance. Passi has expressed his ambition to achieve an annual turnover of around £400 million, with a particular focus on expanding in the UK and the US. In April, he discussed the company’s plans for aggressive expansion and indicated the possibility of selling a minority stake to raise up to £100 million, leading to speculation about a potential majority takeover or an initial public offering.

Missguided has encountered challenges despite its size and popularity. It experienced financial difficulties in past years, resulting in losses. The company’s foray into brick-and-mortar stores also proved unsuccessful, leading to the closure of flagship locations like Westfield Stratford and Bluewater. Additionally, Missguided faced a supplier scandal when it was revealed that a supplier based in Leicester was paying workers below the minimum wage.

Although the ongoing talks between JD Sports and Missguided have yet to be confirmed, the potential acquisition presents opportunities for both companies. JD Sports, primarily known for its sportswear and athleisure offerings, could expand its product range by incorporating Missguided’s trendy and accessible fashion items. On the other hand, if JD Sports were to become the majority stakeholder or acquire Missguided entirely, the online retailer could benefit from JD Sports’ expertise in retail operations and strengthen its position in the highly competitive fashion industry. However, it remains to be seen whether a deal will be reached between the two companies or if other investors will also enter into discussions with Missguided.

Useful links:
1. Sky Sports
2. Missguided