Missguided secures rescue deal with London-based investor

Under the terms of the deal, Alteri will take over Missguided’s existing debt and 50% of the company’s equity
// Missguided sells 50% stake to Alteri Investors
// The acquisition provides Missguided with liquidity after the supply chain crisis

Missguided has announced that Alteri Investors has acquired a 50% stake in its business, giving the retailer liquidity amid the supply chain disruption.

The investment in Missguided comes after the fashion retailer faced a strenuous year following the pandemic.

Missguided was reported to be seeking emergency funding back in October.

READ MORE: Missguided launches affordable kidswear range

Under the terms of the deal, Alteri will take over Missguided’s existing debt and 50% of the company’s equity.

The investor pledged to “provide the business with the liquidity and support it needs to overcome short-term supply chain challenges, as well as a platform to return the business to sustainable profitability”.

Two directors from Alteri will also be added to the Missguided board, while an additional executive chair with “strong retail and turnaround experience” will join.

“Earlier this year we launched a process to identify a partner to help us navigate short-term challenges but more importantly deliver on the great opportunity that exists for this brand,” Missguided founder and chief executive Nitin Passi said.

“Alteri’s deep sector expertise, proven track record and focus on driving operational efficiency make it the right partner. We look forward to working closely with the Alteri team as we return Missguided to profitability.”

Alteri Investors founder and chief executive Gavin George said: “Missguided is a much-loved brand with an entrepreneurial spirit, which has seen it stay exciting and relevant over more than a decade and build a meaningful share of competitive markets in the UK, the US and beyond.

”Alteri’s success in this process is testament to the breadth of our operational transformation capabilities and our retail sector expertise.

“As a digital pure-play retailer, Missguided is exposed to core markets enjoying strong double-digit growth, and the brand is very well placed to capture the opportunity that these positive market dynamics present.

“We are looking forward to working with Nitin and the management team to help the business achieve its considerable potential.”

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