SHEIN in talks to acquire the UK fashion brand Misguided, sources said

According to a report from Sky News in the UK, Chinese fast fashion giant SHEIN is engaged in "detailed negotiations" with UK fashion retail giant Frasers Group regarding the acquisition of the British internet fashion brand Misguided. The talks have been ongoing for several weeks. However, specific details and the likelihood of the acquisition have not been disclosed.

If the acquisition is successful, this would be SHEIN's first acquisition or partial acquisition of a UK brand. Industry media speculates that this may be a signal of SHEIN's attempt to enter the UK fashion market.

However, according to insiders, the collaborative structure may not be a simple acquisition of the Misguided brand. In Aug, Frasers Group reached a cooperation agreement with SPARC Group, a joint venture between Authentic Brands Group and Simon Property Group, and acquired one-third of SPARC's shares. Frasers Group also distributes Forever 21 brand products from the SPARC Group on the SHEIN platform, and SPARC holds a partial stake in SHEIN. Similarly, if SHEIN reaches an agreement with Frasers Group, a similar partnership structure may be adopted.

In addition, another source revealed that Frasers Group may retain the headquarters of the Misguided brand, while SHEIN would retain the brand and other intellectual property of Missguided.

SHEIN was founded in China in 2012 and currently has its headquarters in Singapore. Its latest round of financing valued the company at approximately $66 billion. It was previously reported that SHEIN is considering going public in the United States next year.

Missguided was founded by Nitin Passi in 2009 and primarily targets female consumers aged 16 to 35. The brand experienced rapid growth in its early stages but later faced challenges such as rising supply costs, inflationary pressures, and intense market competition. In the end, Missguided entered bankruptcy proceedings due to increasing supplier debt and the inability to find a buyer at the last minute.

In Jun 2022, Frasers Group, controlled by billionaire Mike Ashley, acquired the bankrupt Missguided. The acquisition was valued at approximately £20 million, including the intellectual property of Missguided and its sister brand Mennace.