Frasers Group offloads IP of women’s fashion brand
Shirebrook-based Frasers Group has sold the intellectual property of women’s clothing and fashion brand Missguided to SHEIN.
The deal will see SHEIN acquire the IP and trademarks of Missguided, with Frasers keeping hold of its real estate and employees, which have now been integrated into Frasers’ fashion division.
Michael Murray, CEO of Frasers Group, 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.”
Russ Mould, investment director at Manchester investment platform, AJ Bell, said: “Frasers’ sale of Missguided assets to Shein could prove to be a strategically important move for the UK retailer. It provides a foot in the door to a potential close working relationship with the Chinese fashion seller.
“Shein has become a major force in online retail and is one of the key reasons why the likes of ASOS and boohoo are struggling. The Chinese company is aggressive on price, selling items cheaper than rivals and becoming the go-to-place for young shoppers in many parts of the world.
“Frasers could feasibly be interested in a distribution deal whereby it can sell its products on Shein’s platform, while also using its Sports Direct and Flannels stores as a potential return hub for the Chinese partner. The more people coming through its doors, the more opportunities it has to try and sell its products.
“In the US, Sparc recently struck a deal with Shein to do something similar with the Forever 21 brand and is even going as far as taking a stake in the Chinese group and vice versa.”
He added: ” You might think it an odd move to be working closely with an arch-rival. But Sparc and potentially Frasers know there is a benefit in having greater distribution reach.”
