Shein Acquires the Missguided Brand from Frasers, a British Retailer
Shein, the fast-fashion retailer founded in China, has acquired the Missguided brand from Mike Ashley's Frasers Group, marking Shein's first purchase of a British brand. Frasers Group announced on Monday that Shein will take ownership of the intellectual property and trademarks of Missguided, while Frasers will retain control of its real estate and employees, who are now integrated into Frasers' fashion division.
The financial terms of the deal have not been disclosed, but Frasers mentioned that the transaction has opened up discussions with Shein about potential collaboration opportunities within its brand portfolio. In June 2022, Frasers, formerly known as Sports Direct, acquired Missguided out of administration for £20 million ($24.2 million).
This acquisition is noteworthy as it signifies Shein's debut in purchasing a British brand and aligns with its emphasis on the UK as one of its fastest-growing markets, according to Shore Capital analyst Eleonora Dani.
The integration will introduce the Missguided label to Shein's online platform, which serves approximately 150 million users. Frasers also possesses other brands in women's online fashion, including "I Saw it First" and "Missy Empire."
Frasers CEO Michael Murray expressed that retaining the combined Frasers fashion teams and streamlining its portfolio to focus on fewer brands makes strategic sense given the current business environment. He also expressed enthusiasm for ongoing discussions regarding potential collaboration between Frasers Group and Shein.
In early trading, Frasers Group shares saw a 1.4% increase. Shein has relocated its headquarters to Singapore but continues to manufacture the majority of its products in China.
A Reuters report from July indicated that Shein was exploring the possibility of a U.S. initial public offering and had engaged in discussions with the New York Stock Exchange and Nasdaq.
In August, Shein entered into a partnership with SPARC Group, a joint venture involving Authentic Brands, the owner of Forever 21, and mall operator Simon Property. This partnership aimed to enhance Shein's presence in the United States and expand its market reach.