Alteri Investors back struggling fast fashion brand Missguided

Troubled fast-fashion retailer Missguided has sold a 50% stake to Alteri Investors.

The specialist European retail investor is backing the Manchester-headquartered brand with significant investment to help the online retailer following a challenging pandemic period.

Missguided was reported to be seeking emergency funding from outside investors back in October.

Alteri’s investment comprises of both debt and the acquisition of 50% of the group’s equity to provide Missguided with the liquidity and support it needs to overcome short-term supply chain challenges, as well as a platform to return the business to sustainable profitability.

The investment firm, which specialises in buying struggling retailers, said in a statement that after addressing short-term priorities including restocking following recent supply chain challenges, that it will work with management to develop a new strategy to transform the group’s profitability.

The company achieved a turnover of £201.9m and pre-tax losses of £8.2m for the year to March 2021.

The Missguided board will be further reinforced with the addition of two directors from Alteri Investors.

Missguided founder and chief executive Nitin Passi said in a statement: “Earlier this year we launched a process to identify a partner to help us navigate short-term challenges but more importantly deliver on the great opportunity that exists for this brand.

“Alteri’s deep sector expertise, proven track record and focus on driving operational efficiency make it the right partner. We look forward to working closely with the Alteri team as we return Missguided to profitability.”

Alteri Investors founder and chief executive Gavin George said: “Missguided is a much-loved brand with an entrepreneurial spirit which has seen it stay exciting and relevant over more than a decade and build a meaningful share of competitive markets in the UK, the US and beyond. Alteri’s success in this process is a testament to the breadth of our operational transformation capabilities and our retail sector expertise.

“As a digital pure-play retailer, Missguided is exposed to core markets enjoying strong double-digit growth, and the brand is very well-placed to capture the opportunity that these positive market dynamics present.

“We are looking forward to working with Nitin and the management team to help the business achieve its considerable potential.”

This investment will be made from Alteri’s second investment vehicle, launched in August 2019, with the backing of funds managed by affiliates of Apollo Global Management, Inc.

Nitin Passi, 38, started the online store in a factory in Manchester in 2009.