Frasers Group is reportedly looking to sell its Missguided label less than 18 months after buying the business out of insolvency.
The group, which owns Sports Direct, House of Fraser, and Jack Wills, among others, is in “detailed negotiations” with fast fashion retailer Shein over a potential sale of Missguided, according to a Sky News report.
The two fashion giants have been in talks for several weeks, the outlet reports, citing City sources.
However, it added that the outcome of the deal remains uncertain, and the timing of its completion, if it does go through, is also unclear.
If the deal does go ahead, it will be Shein’s first acquisition of a British fashion brand.
Founded in China in 2008, Shein has grown rapidly in recent years, but has also drawn criticism for its cheap clothes and the speed at which it churns out new collections.
The retailer, which to many has become one of the faces of fast fashion, had a valuation of around 66 billion dollars following a funding round earlier this year, according to a report by The Wall Street Journal.
Last year, its value was above 100 billion dollars, dwarfing that of rivals Inditex and H&M.
Missguided was founded in 2009 by Nitin Passi. The fast fashion company fell into administration in 2022 after it was issued a winding-up order by supplier JSK Fashions which said the retailer owed it millions of pounds, Sky News reported at the time.
Just days after its collapse, the company was bought by Frasers Group for 20 million pounds.