Mike Ashley’s shopping empire, Frasers Group, which owns House of Fraser and Sports Direct, has stepped in to save Missguided from bankruptcy.
The company paid £20 million for the struggling online retailer.
Michael Murray, the boss of Frasers Group said, “We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of FG’s platform and our operational excellence.”
He added, “Missguided’s digital-first approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group.”
On Monday, the company, which employs roughly 330 people, appointed administrators from Teneo.
Frasers Group confirmed it had purchased the intellectual property of Missguided and Mennace, which it said would be run by administrators for about eight weeks.
Millions of pounds are still owed to its clothing suppliers.
Supply chain issues, higher freight prices, and increased competition from competitors have all harmed the company.
Fraser Group intends to make the company a standalone business after its transitional agreement.
Mr. Ashley has previously purchased Jack Wills, portions of Debenhams, and House of Fraser, among others, and this is not the first time he has taken on a faltering British business.
After acquiring Game, Evans Cycles, Jack Wills, and Sofa.com in similar deals, Missguided will become the group’s latest problematic brand.
Boohoo, Asos, and JD Sports are among the retailers rumored to be interested in a possible rescue package.
Nitin Passi founded Missguided in 2009 and developed it into one of the UK’s largest online-led fashion retailers, competing with ASOS and Boohoo.