Is Mike Ashley selling Misguided to Chinese fashion giant Shein? Here is what we know so far

economictimes.indiatimes.com:

Mike Ashley is reportedly in discussions to sell online clothing brand Missguided to the Singapore-based giant, Shein. This potential deal is in progress months after Ashley's Frasers Group saved the brand from administration. Here's what we know:

Negotiations Between Missguided and Shein

Reports have emerged indicating that Mike Ashley's Frasers Group is in negotiations regarding the sale of Missguided, an online clothing label. While discussions have been ongoing for several weeks, there is no definitive confirmation of a sale at this point.

Shein's First British Fashion Brand Acquisition

If this deal materializes, it would mark Shein's first acquisition of a British fashion brand. Shein, founded in China in 2012 and now headquartered in Singapore, has recently been valued between £53 billion and £80 billion. These talks suggest a strategic move into the British fashion market.

Mike Ashley's Rescuing of Missguided

Mike Ashley's Frasers Group came to the rescue of Missguided in June of the previous year when the online fashion retailer had fallen into administration. The purchase, valued at approximately £20 million, included the intellectual property rights of Missguided and its sister brand, Mennace. The brand was confirmed to continue operations under administrators for a transition period of around eight weeks.

Missguided's Turbulent Journey

Founded in 2009 by Nitin Passi, Missguided experienced rapid growth during the early years of online fashion retail. However, it faced challenges such as surging supply costs, broader inflationary pressures, and a highly competitive market. The company's fall into administration resulted from an inability to secure a last-minute buyer amid mounting debts to suppliers.

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