Mike Ashley’s Frasers Group has revealed it has bought online fashion retailer Missguided out of administration.
The online retailer collapsed on Monday after failing to find a buyer, days after i revealed the Manchester-based firm owed suppliers millions of pounds.
Mr Ashley’s firm, which also owns House of Fraser and Sports Direct, bought Missguided for £20m, a notice on the London Stock Exchange revealed.
Missguided had brought in administrators from Teneo after being issued with a winding-up petition by suppliers who were owed millions of pounds.
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.”
Prior to this morning’s announcement, Boohoo had been in talks to buy Missguided in a pre-pack administration deal, with Asos and JD Sports also reportedly interested in taking over the fashion retailer.
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Missguided told staff they had been made redundant via a pre-recorded audio message during a phone conference where laid-off employees were automatically muted, it emerged this week.
Teneo announced the company’s demise, blaming increased supply chain costs, general inflation and weakened consumer confidence.
On Tuesday, security guards were stationed at the gates of Missguided’s headquarters to prevent axed staff from returning, company sources said.
Missguided had been saved from collapse last year after being taken over by investment firm Alteri, but announced last month it was seeking a new buyer.
Last week, i had reported that Missguided was on the brink of collapse with millions owed to suppliers and thousands in danger of losing their jobs.
Three factory owners told i they were at risk of going bankrupt and one claimed he had to sell his wife’s jewellery to to pay staff.