Frasers Group has bought the online fashion retailer Missguided out of administration for £20m in cash, beating rival fast-fashion brand Boohoo to the deal.
The ecommerce retailer called in administrators after it failed to finalise a rescue deal, putting around 140 jobs at risk and leaving countless orders unfulfilled.
Missguided drafted in Teneo Financial Advisory to handle the process after suppliers – who have not been paid in months – issued it with a winding up petition in early May. Some are owed up to £2m.
READ MORE: Missguided: What went wrong for the fast fashion giant?
Once the deal is completed, Missguided will be operated by the administrator under a transitional agreement for about eight weeks, before it begins to operate as a standalone business within the Frasers Group portfolio.
Frasers Group, owned by Mike Ashley, has also acquired the Missguided-owned menswear site Mennace.
Chief executive Michael Murray 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.
“Missguided’s digital-first approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group.”
A number of major UK retailers including JD Sports, Asda, Asos and Shein had also showed an interest in buying the brand.