Shein In Talks To Buy Missguided From Mike Ashley’s Frasers Group

Shein, created in China in 2008, is a global fast fashion behemoth.

According to the BBC, Mike Ashley’s Frasers Group is in talks to sell its Missguided clothing brand to online fashion giant Shein.

The talks regarding a purchase, first reported by Sky News, occurred only a year after Frasers acquired the brand.

Last year, Frasers Group paid £20 million for Missguided after the online apparel store went bankrupt.

Shein, created in China in 2008, is a global fast fashion behemoth.

Frasers Group and Shein have both been reached for comment.

According to Sky, the agreement will see Shein acquire Missguided’s brand and other intellectual property while Frasers retains the head office.

Missguided, situated in Manchester, was launched in 2009 by Nitin Passi and has since grown to become one of the UK’s largest online fashion players.

However, due to supply chain issues, rising freight prices, and increased competition from rivals, it went into administration in May 2022 before being acquired by Frasers Group.

Frasers, which owns the Mike Ashley-founded Sports Direct company, has grown swiftly by acquiring troubled brands. Game, Evans Cycles, Jack Wills, and Sofa.com are examples.

While Mike Ashley is no longer the CEO of Frasers, he still maintains a majority ownership in the company.

Shein, which currently has its headquarters in Singapore, saw a boost in sales during the Covid epidemic when lockdowns increased internet purchases.

It was valued at roughly $66 billion earlier this year, which was lower than a previous valuation of around $100 billion.

It has been speculated that Shein will attempt to float its shares in the United States.

However, in May, a group of US congressmen demanded that Shein be investigated amid allegations that people from China’s predominantly Muslim Uyghur community were used as forced labor to create some of the clothing it sells.

Human rights organizations and Western governments, particularly the United States and the United Kingdom, have accused China of perpetrating crimes against humanity against the Uyghurs.

Shein responded to the BBC, saying, “We have zero tolerance for forced labour.”

“Our suppliers must follow a strict code of conduct that is aligned with the core conventions of the International Labour Organisation.”

SOURCE – (BBC)