The British retail group Frasers Group Plc is separating from the fast fashion label Missguided. On Monday, the company said it would sell Missguided’s intellectual property rights, including trademark rights, to Chinese textile supplier Shein. Financial details of the proposed transaction were not disclosed.
The properties and employees of Missguided, who are already integrated into the group’s fashion division, will therefore remain with Frasers. The agreement also lays the foundation for “exciting discussions with Shein about possible collaborations across our entire brand portfolio,” the retailer said.
Frasers only took Missguided out of bankruptcy last year
The Frasers Group, which includes retail chains such as Sports Direct, House of Fraser and Flannels, only took Missguided out of bankruptcy in the summer of 2022. Speculation about an impending sale of the label had been circulating for weeks.
Michael Murray, the retailer’s CEO, explained the background to the decision that has now been announced. “With I Saw it First and Missy Empire, we now have a foothold in women’s fashion geared towards digital channels,” he explained in a statement. “In the current climate, it makes sense to focus on fewer brands in this segment by keeping our full fashion teams but streamlining the portfolio.” He also welcomes the “ongoing discussions about further collaboration” with Shein, said Murray .
The group is streamlining its fashion portfolio and expanding in the sporting goods segment through the takeover of Sportscheck
However, the Frasers Group wants to expand further in its core business with sporting goods: just a few days ago it announced the takeover of the German retail chain Sportscheck.
Shein said that the license for Missguided would be awarded to a new joint venture called Sumwon Studios, in which the group and Missguided founder Nitin Passi are involved. The joint venture will therefore manage the brand in the future, while Shein’s existing infrastructure will be used for production and sales.
Shein is strengthening its presence in the international fast fashion business
With the transaction, the textile group gains access to another well-known fast fashion label. On Friday, Shein had already announced that it would further deepen the recently concluded partnership with the US fashion and media group Authentic Brands Group LLC (ABG) for the Forever 21 brand. Accordingly, the group will develop, produce and market the “Forever 21 x Shein” line in the future. It will include, among other things, sports and activewear as well as swimwear.