Mike Ashley to sell Missguided to Chinese fashion giant months after saving it

Mike Ashley is set to sell online clothing label Missguided to Shein, the giant online fashion firm, months after saving the brand.

Reports have suggested the retail tycoon's Fraser Group is engaged in negotiations about a deal for the firm, which the former Newcastle United owner bought out of administration for £20million in June 2022. It is said to have been discussed over the last few weeks.

Missguided was founded in 2009 by Nitin Passi and grew rapidly amid rising demand for online fashion. However, the company was hit hard by surging supply costs, wider inflationary pressures and waning consumer confidence in the increasingly competitive market.

Shein was founded in China in 2012 but is now based in Singapore and was recently valued between £53 billion and £80 billion. Talks are ongoing between the two organisations, according to Sky News.

Fashion firm Missguided fell into administration after failing to secure a last-minute buyer and called in administrators Teneo after suppliers it owed millions of pounds to petitioned for it to be wound up. Missguided was founded in 2009 by Nitin Passi and grew rapidly amid rising demand for online fashion.

UK's biggest taxpayers as £8billion betting boss loses crown - see full list

However, the company was hit hard by surging supply costs, wider inflationary pressures and waning consumer confidence in the increasingly competitive market.

Speaking of the deal in June 2022, 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."

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.

Earlier this year it was reported Sports Direct founder Mike Ashley’s wealth has rocketed by 28% since last year to more than £3.8bn.