Mike Ashley is in talks to sell Missguided to discount fashion giant Shein.
According to Sky News, the pair are in detailed discussions and talks have been ongoing for several weeks.
The move would be Shein’s first purchase of a British fashion brand. One city source told the publication that the Chinese fashion giant would likely keep Missguided’s brand and other intellectual property but Frasers Group would retain the fashion retailer’s head office.
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Frasers bought Missguided out of administration just over a year ago for £20m.
At the time, Frasers Group CEO Michael Murray said the fashion brand would benefit from “the strength and scale of FG’s platform and our operational excellence”.
Meanwhile, he said the fashion brand’s “digital-first approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group”.
The group followed up the acquisition by snapping up ISawItFirst.com, which retail watchers took as evidence that Frasers was looking to build an online fashion empire.
The retail group has also build up stakes in Boohoo and Asos, upping its shareholdings in both businesses earlier this month.
It now holds a 10.4% stake in Boohoo and 19.8% of Asos.
Meanwhiile, Shein has recently struck a deal with Forever 21 owner SPARC which will see the US fashion brand sold on its platform.
The fashion giant took a one third stake in SPARC and the company took a undisclosed minority stake in Shein.
Sky News reported that a similar partnership could be “conceivable” between the fashion giant and Frasers Group.
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