Shein Purchases Missguided from Frasers Group

China-based fast fashion retailer Shein has bought the Missguided brand from Mike Ashley’s Frasers Group, the e-commerce giant and its first acquisition of a British brand. Frasers said on October 30 that Shein will acquire Missguided's intellectual property rights and trademarks, while Frasers will retain its properties and staff, which are now integrated into Frasers fashion department.

Financial details of the deal were not disclosed, but Frasers said the deal allowed “ fascinating interlocutors” about possible collaboration opportunities with Shein in his brand portfolio. Frasers, formerly Sports Direct, bought Missguided out of administration in June 2022 for £20 million ($24.2 million).

"The move is particularly notable as it marks Shein's first acquisition of a British brand, which fits well with its focus on the UK as one of its fastest-growing markets," said Eleonora Dani, an analyst at Shore Capital.

It brings the Missguided brand to Sheinand's online platform, which serves around 150 million users.

Frasers also owns "I Saw It First" and "Missy Empire" women's and online fashion brands. Frasers chief executive Michael Murray said keeping Frasers' combined fashion teams and rationalizing its portfolio to focus on fewer brands in the region made sense in the current climate.

"We are also excited about continued discussions about working with Frasers Group and Shein," he said.

Shares in Frasers were up 1.4 per cent in early trade. Shein moved its headquarters to Singapore but manufactures most of its products in China. Reuters reported in July that Shein was working on a possible US IPO and was in talks with the New York Stock Exchange and Nasdaq.

In August, Shein partnered with SPARC Group, a joint venture between Forever 21 owner Authentic Brands and mall operator Simon Property, as the online fashion retailer looked to expand its market reach in the United States.