Mike Ashley’s Frasers in talks to offload Missguided to Chinese fast fashion giant Shein
Mike Ashley’s Frasers Group is reportedly in talks to offload its online clothing brand Missguided to Chinese fast fashion giant Shein.
Frasers, which owns the high street favourites such as Sports Direct and Jack Wills, bought Missguided for £20m last year after it collapsed into administration.
As part of the rescue deal, the Manchester business kept its online store and Frasers also began selling Missguided clothes on its Sports Direct website.
But reports from Sky News say that both parties have been in discussions about a deal which could see Shein buy the retailer’s brand and intellectual property while Frasers would retain the head office.
If the deal goes ahead it would be Shein’s first acquisition of a British firm and would further solidify its presence and weight in the Western retail space.
The Chinese e-commerce brand, which was founded by mysterious billionaire Chris Xu, grew in popularity during the pandemic when bored shoppers stocked up on its cheap and trendy garments.
Shein revenues are expected to reach $60bn (£48bn) by 2025 and the company recently opened a ‘pop up’ store on Oxford Street to celebrate London Fashion Week.
However, the company has been criticised for its ultra fast fashion business model, and the company has also been accused of using sweatshops.
As for Frasers, the proposed sale would be a change of direction for the company which has spent the past 12 months building up stakes in various online brands, such as AO World and Boohoo.
City A.M has contacted Shein and Frasers Group for comment.