Alteri Investors, the specialist European retail investor, is backing fast-fashion brand Missguided with significant investment to help the online retailer following a challenging pandemic period.
Alteri’s investment comprises of both debt and the acquisition of 50 percent of the group’s equity to provide Missguided with the liquidity and support it needs to overcome short-term supply chain challenges, as well as a platform to return the business to sustainable profitability.
The investment firm, which specialises in buying struggling retailers, said in a statement that after addressing short-term priorities including restocking following recent supply chain challenges, that it will work with management to develop a new strategy to transform the group’s profitability. In the medium term, the focus will be to shift to initiatives aimed at delivering sustainable growth.
To help drive improvement in Missguided’s performance, which has seen it achieve sales of 287 million pounds in the year to March 2021, Alteri is boosting the current management with an executive chairman with “strong retail and turnaround experience,” and discussions with a “favoured candidate are well progressed”.
The Missguided board will be further reinforced with the addition of two directors from Alteri Investors.
Alteri Investors backs fast fashion brand Missguided
Missguided founder and chief executive Nitin Passi said in a statement: “Earlier this year we launched a process to identify a partner to help us navigate short-term challenges but more importantly deliver on the great opportunity that exists for this brand.
“Alteri’s deep sector expertise, proven track record and focus on driving operational efficiency make it the right partner. We look forward to working closely with the Alteri team as we return Missguided to profitability.”
Alteri Investors founder and chief executive Gavin George said: “Missguided is a much-loved brand with an entrepreneurial spirit which has seen it stay exciting and relevant over more than a decade and build a meaningful share of competitive markets in the UK, the US and beyond. Alteri’s success in this process is a testament to the breadth of our operational transformation capabilities and our retail sector expertise.
“As a digital pure-play retailer, Missguided is exposed to core markets enjoying strong double-digit growth, and the brand is very well-placed to capture the opportunity that these positive market dynamics present. We are looking forward to working with Nitin and the management team to help the business achieve its considerable potential.”
This investment will be made from Alteri’s second investment vehicle, launched in August 2019, with the backing of funds managed by affiliates of Apollo Global Management, Inc.
Missguided was founded in 2009 as an online-only digital ‘pure play’ retailer and fashion brand by Passi. Today, it is a fast-fashion business serving more than four million active, 18–30-year-old customers in over 180 countries worldwide, with the UK and US being two of its largest markets.