Digital fast fashion retailer Shein has acquired UK women’s retailer Missguided from Frasers Group. Frasers Group acquired Missguided just a little over one year ago after the brand entered administration, the UK version of bankruptcy.
Missguided has been under pressure for several years, first falling into financial difficulties in late 2021 when it was saved by an investment from private equity firm Alteri.
Now Shein thinks it has what it takes to turn the ailing retailer around with the help of its on-demand production model, which increases product outputs only when market demand has been demonstrated, thus reducing waste and excess inventory. As part of the acquisition, Shein will license the Missguided brand IP to Sumwon Studios, anew joint venture between Shein and Missguided’s Founder Nitin Passi. Missguided will be managed through the joint venture, and its collections will by manufactured by Shein. Missguided products will be sold as an independent brand on Shein sites as well as on Missguided.com.
“The joint venture we have entered ushers in a new format of partnerships for Shein as part of our unwavering commitment to meet customer demand,” said Donald Tang, Executive Chairman of Shein in a statement. “Shein aims to reignite the Missguided brand, capitalizing on its unique brand personality, and fueling its global growth through Shein’s on-demand production model, unparalleled ecommerce expertise and global reach.”
The Missguided acquisition follows Shein’s growing partnership with U.S. fast fashion brand Forever 21; those two brands recently announced plans for a co-branded line of men’s and women’s apparel that will be sold exclusively on Shein.