By Guest Writer • 02 June 2022 • 13:33
Missguided will be separate from House of Fraser stores
Credit: Kake flickr
This means that that Frasers, set up by former Newcastle United Football Club Mike Ashley will be able to run the online retailer as a standalone operation within the group and appeal directly to young buyers looking for reasonably priced ‘fast fashion’.
Frasers were quick off the mark as the company only went into Administration on Monday May 30 after it was issued with a winding-up petition by clothing suppliers who are owed millions of pounds and the deal was announced on Wednesday June 1.
Having purchased intellectual property rights rather than taking over the companies completely means that Frasers Group are not left with ‘dead stock’ nor are they responsible for the outstanding debts and administrators Teneo will have eight weeks to manage the operation before handing it over to Frasers.
Some 80 staff had reportedly already been made redundant and it seems likely that the balance will more to work for Frasers who also own House of Fraser and JD Sports.
After announcing the deal, 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 FG’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.”
As more young fashion buyers look to be more aware of the long effects that cheap throw away fashion has on the environment, the Missguided model has struggled over the past few years to remain in profit and even with a cash injection last year was unable to continue to trade.
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