Mike Ashley – billionaire owner of Derbyshire-based Sports Direct – buys Missguided out of administration in £20m deal

Mike Ashley’s company Frasers Group has finalised a multi-million pound deal to save online women’s fashion retailer Missguided.

Wednesday, 1st June 2022, 4:02 pm

The Manchester-based firm collapsed on Monday after failing to secure a buyer, with the company still owing millions of pounds to suppliers.

It was reported by the I yesterday that bosses used a pre-recorded audio message in a phone conference to inform staff that they were being made redundant – with laid-off employees also being automatically muted.

Company sources alleged that around 80 of the company’s 330 staff members were told they had lost their jobs – with some who were on holiday only finding out from fellow colleagues and social media.

Mike Ashley’s company Frasers Group has finalised a multi-million pound deal to save online women’s fashion retailer Missguided.

These sources also claimed that security guards were posted outside Missguided’s headquarters in a bid to stop employees who had been made redundant from returning to the premises.

Frasers Group is owned by Mike Ashley, and oversees a number of companies including Derbyshire-based Sports Direct, House of Fraser and Flannels.

The group has paid £20m for all of Missguided’s intellectual property, and Frasers chief executive, Michael Murray, 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.”

Missguided was founded in 2009 by Nitin Passi, and expanded rapidly as the demand for online fashion grew.

According to administrators Teneo, however, the company struggled to cope with increasing supply chain costs, inflation and weakened consumer confidence.