Mike Ashley's retail empire has snapped up troubled fast fashion brand Missguided in a rescue deal.
The deal comes after Missguided collapsed into administration on Monday after suppliers accused the business of millions of pounds worth of outstanding payments.
Frasers Group, which also owns a number of brands including Sports Direct, Flannels, Evans Cycles and House of Fraser, confirmed in a stock market announcement that it has bought the intellectual property of the retailer and sister brand Mennace for around £20m.
READ MORE: What does Mike Ashley own? Inside the Frasers Group owner's retail empire
Industry specialist Andrew Busby, Retail industry lead at Software AG said it was a 'very shrewd move.'
He said: “Fraser Group is doing what Missguided didn’t do – diversifying. With a far larger footprint than Missguided did on its own, Michael Murray is clearly taking the Fraser Group forward. He sees this as an opportunity to acquire not only the intellectual property of Missguided but also bring in the digital prowess that is native within the Missguided business.
“We will no doubt see the brand ‘grow up’ under the stewardship of Fraser Group. The trick and focus will be to win back the 18-30 target audience group whilst projecting strong sustainable credentials.”
Missguided will continue to be operated by administrators for a transition period of around eight weeks.
After that, the company said it then intends to continue to run Missguided as a "standalone" brand within its group.
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.
"Missguided's digital-first approach to the latest trends in women's fashion will bring additional expertise to the wider Frasers Group."
The deal comes two days after the firm announced it had called in administrators from Teneo, following a winding-up petition by suppliers who said they were owed millions of pounds.
The insolvency specialists announced on Monday that they were seeking to sell the business and assets of the retailer, which employs around 330 staff from its Manchester base.
Missguided was founded in 2009 by Nitin Passi and grew rapidly amid rising demand for online fashion.
Mr Passi announced he was leaving the business as Chief Executive in April.
The company has been hit hard by surging supply costs, wider inflationary pressures and waning consumer confidence in the increasingly competitive market.
