Mike Ashley’s Frasers Group buys Missguided out of administration

Mike Ashley’s Frasers Group revealed this morning that it has bought online fashion retailer Missguided out of administration.

The fast fashion firm Missguided had fallen into administration yesterday after failing to secure a last-minute buyer.

The business had called in administrators from Teneo after it was issued with a winding-up petition by suppliers owed millions of pounds.

Missguided had fallen into administration yesterday after failing to secure a last-minute buyer

The insolvency specialists had been seeking to sell the business and assets of the retailer, which employs around 330 staff from its Manchester base.

Missguided was founded in 2009 by Nitin Passi and grew rapidly amid rising demand for online fashion.

However, the company was hit hard by surging supply costs, wider inflationary pressures and waning consumer confidence in the increasingly competitive market.

Boohoo had been in talks to buy the business in a pre-pack administration deal, while Asos and JD Sports were also reported to have been interested.

Administrators said the business will continue to trade while they seek to sell off assets and stressed that there has been a “high level of interest”.

Last autumn, Missguided was saved in a takeover by investment firm Alteri, which announced redundancies in December as part of a turnaround plan.

However, last month the retailer confirmed it was looking for a potential new buyer as founder Mr Passi stepped down as chief executive amid continued financial pressure.