Frasers Group PLC (LSE:FRAS) has sold the Missguided brand and intellectual property rights to Shein for an undisclosed sum, just over a year after it bought the online fashion retailer.
Frasers, owned by Mike Ashley, said it will retain Missguided’s real estate and employees, which have been integrated into Frasers’ fashion division.
Frasers said the deal has enabled “exciting discussions” with Shein around opportunities for potential collaboration across its brand portfolio.
Michael Murray, CEO of Frasers, said: ”With I Saw it First and Missy Empire, we now have a foothold in women's digital-first fashion.
“Retaining the combined Frasers fashion teams whilst rationalising our portfolio in this space to focus on fewer brands makes a lot of sense in the current climate.”
“We are also excited about the ongoing discussions around further collaboration between Frasers Group and Shein."
Frasers bought Missguided out of administration for £20 million last year when the company fell victim to supply chain problems, rising freight costs and increasing competition.
In its own announcement, Shein said it had entered into an agreement to license the brand IP to Sumwon Studios, a joint venture it has set up with Missguided’s founder, Nitin Passi.
The brand will be managed through the joint venture, and its products and collections will be manufactured through Shein's on-demand production model and sold on Shein's various country-focused websites.
“The joint venture we have entered ushers in a new format of partnerships for Shein, as part of our unwavering commitment to meet customer demand” said executive chairman Donald Tang.
“Shein aims 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.”