rasers Group owned by billionaire and Sports Direct founder Mike Ashley has rescued troubled online fast fashion retailer Missguided from the jaws of administration with a surprise £20 million bid.
The company knocked out Boohoo who were also in the running to take over the business up until yesterday.
Frasers, already owns the brands Sports Direct, House of Fraser and Flannels, and announced it had acquired the intellectual property of Missguided and other related firms.
Missguided will still continue to be operated by the administrator under a transitional agreement for an estimated eight weeks before it becomes part of the Frasers empire.
Michael Murray, chief executive of Frasers Group, said: “We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of Frasers Group’s platform and our operational excellence.
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Earlier this week, Missguided had faced collapse after a winding up petition was issued on behalf of unpaid supplier JSK Fashions. Administrators Teneo had already stepped in to organise a sale of the business.
Upset suppliers and manufacturers claimed Missguided owed them millions of pounds, and that the financial pressure had placed them under the threat of bankruptcy, due to unpaid invoices.
Last autumn, the online retailer was saved from collapse as the retail investor Alteri, backed by the investment firm Apollo, bailed out the company taking a 50% share.
Alteri then announced redundancies last December as part of a financial restructuring of the business.
