Missguided SAVED as Mike Ashley’s Frasers Group buys online retailer after administration talks fail
ONLINE fashion giant Missguided has been SAVED after it collapsed into administration earlier this week.
Mike Ashley’s Frasers Group today revealed it had snapped up the crumbling fashion brand in a last minute rescue deal.
Missguided collapsed into administration on Monday after suppliers accused the business of millions of pounds worth of outstanding payments.
But on Wednesday morning, Frasers Group, which also owns Sports Direct and House of Fraser, confirmed it had bought the intellectual property of the retailer and sister brand Mennace for around £20million.
It confirmed Missguided will continue to be operated by administrators for a transition period of around eight weeks.
The group then said it intends to continue to run Missguided as a "standalone" brand within its group.
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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 clothes company collapsed this week after it was accused of not paying suppliers.
Some of the online retailer’s UK and overseas suppliers told they had not been paid for months.
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One told they had to sell wedding jewellery belonging to his mum and wife to raise £40,000 for staff's wages.
Furious shoppers then blasted the retailer for not fulfilling orders.
The company was continuing to take orders on Monday, but sources said it was not clear if the group’s distribution partner, GXO, was continuing to handle those orders.
On Twitter, one customer wrote: "Ordered NDD (next day delivery) on the 26th and it's still not been dispatched yet. Please can you guys let me know where my parcel is!!"
Another added: "I'm never ordering from you guys ever again. I paid for next day delivery YET my order is not even on its way."
When Missguided replied to the tweet asking the customer to get in touch, she added: "I already did...no one seems to know what's going on."
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In May, Missguided told Retail Gazette: "Missguided is aware of the action being taken by certain creditors of the company in recent days, and is working urgently to address this.
"A process to identify a buyer with the required resources and platform for the business commenced in April and we expect to provide an update on progress of that process in the near future.”
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