Clothes displayed on the Shein headquarters in Singapore on June 19, 2023.
Ore Huiying | Bloomberg | Getty Images
Shein has bought British fast fashion brand Missguided from the Frasers Group as the corporate looks to expand its market share and global reach ahead of a rumored U.S. initial public offering, the firms announced Monday.
The acquisition will see Shein manufacture Missguided’s products and sell them on each firms’ web sites as an independent brand, while Frasers will retain Missguided’s real estate and employees, in response to news releases.
As a part of the deal, Shein will license Missguided’s mental property to Sumwon Studios, a three way partnership between Shein and Missguided founder Nitin Passi. Sumwon will manage and operate the Missguided brand.
The terms of the deal weren’t disclosed.
The acquisition comes just over a 12 months after the Frasers Group bought Missguided out of administration, or the British version of bankruptcy, for £20 million ($24.3 million).
The brand gained prominence when it went viral for selling £1 bikinis and have become a significant player in British fast fashion. But it surely later found itself in dire financial straits and will not pay its suppliers.
Shein’s acquisition of Missguided comes as the corporate looks to expand its marketplace model and offer a broader range of products to its 150 million customers. The deal will allow Shein to grow its market share and deepen its global penetration.
Missguided’s assortment is comparable to lines carried by its latest parent company since the brand is concentrated on the most recent trends and skews lower in price. Even so, its products will be dearer than Shein’s, and will attract a unique demographic.
“The three way partnership we’ve entered ushers in a latest format of partnerships for Shein,” Donald Tang, Shein’s executive chairman, said in a news release. “Shein goals to reignite the Missguided brand, capitalising on its unique brand personality, and fuelling its global growth through SHEIN’s on-demand production model, unparalleled e-commerce expertise and global reach.”
Last week, Shein announced plans to launch a co-branded clothing line with former rival Perpetually 21 after the 2 retailers partnered up in a three way partnership earlier this 12 months. Under the agreement, Shein took a stake in Perpetually 21’s operator Sparc Group, which incorporates brand management firm Authentic Brands Group and mall owner Simon Property Group. Shein also began selling its clothes in Perpetually 21’s stores.
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