Mike Ashley's Frasers Group has revealed it has bought online fashion retailer Missguided out of administration for £20million.
Fast fashion firm Missguided called in administrators yesterday after failing to secure a last-minute buyer.
But just a day later Mike Ashley's firm, Frasers Group, announced it was buying Missguided.
Ashley has a net worth of around £2.7billion, making him one of the UK's richest people.
He set up Sports Direct in 1982, and is also the former owner of Newcastle United Football Club, which he bought for £135million in 2007 before selling it in 2021.
Frasers Group has also bought Missguided-owned menswear brand Mennace.
Missguided appointed administrators Teneo after suppliers it owed millions of pounds to petitioned for it to be wound up.
Boohoo had been in talks to buy the business in a pre-pack administration deal, while Asos and JD Sports were also reported to have been interested.
Michael Murray, chief executive of Frasers Group, said: “We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of Frasers Group’s platform and our operational excellence."
Mike Ashley stepped down as chief executive of Frasers Group last month, but remains a director.
New chief executive Murray is Ashley's future son-in-law.
Murray has called Ashley a “genius of his generation” but that the business needed a “different type of genius and a different type of mindset what takes us forward into the next generation”.
MPs and unions have previously criticised Sports Direct warehouses for operating under 'Victorian' working conditions.
Back in 2016, whilst on a visit to the depot where he was accused of paying less than the minimum wage, Ashley famously flashed a wad of £50 in front of journalists, photographers and film crews.
Last autumn Missguided was saved in a takeover deal by investment firm Alteri, which announced redundancies in December as part of its turnaround plan.
However, last month the retailer confirmed it was looking for a potential new buyer as Passi stepped down as chief executive amid continued financial pressure.
Ashley has form when it comes to buying companies out of administration.
Frasers Group owns Sports Direct, as well as shop chains Jack Wills, Game, Evans Cycles and Lillywhites, many bought after they had called in administrators.
The firm also owns the branding of sports kit like Everlast, Lonsdale and Slazenger.
The business announced three new Flannels department store openings last year in Sheffield, Leicester and Liverpool.
Earlier this year Frasers Group purchased online retailer Studio from an administration also handled by Teneo - for just £1.
Studio appointed Teneo in February after failing to secure a £25million rescue loan.
But in March Studio was sold to Ashley for just £1, after it entered administration with an £80million black hole.
