LONDON — Shein has struck its second big deal in less than a week with the acquisition of the Manchester, England-based online brand Missguided from Frasers Group, WWD has learned.
An announcement is expected Monday.
Shein, which is headquartered in Singapore, offers branded apparel and products from a global network of vendors and targets a young, primarily female customer.
It said Missguided products and collections will be made available to Shein’s 150 million global users as an independent brand via Shein sites, as well as on missguided.com.
As part of the deal, Shein will license the Missguided brand’s intellectual property to Sumwon Studios, a joint venture between Shein and Missguided’s founder, Nitin Passi.
Missguided, a former sponsor of the hit reality TV show “Love Island,” will be managed through the joint venture. Its products and collections will be manufactured through Shein’s on-demand production model.
The model allows Shein to use real-time insights to gauge demand for its new designs. It responds with increased production only when there is actual market demand, enabling it to reduce waste and keep inventories tight.
The terms of the deal were not disclosed.
Donald Tang, Shein’s executive chairman, said the joint venture “ushers in a new format of partnerships for Shein as part of our unwavering commitment to meet customer demand.”
He added that Shein’s aim is to “reignite the Missguided brand, capitalizing on its unique brand personality and fueling its global growth through Shein’s” e-commerce expertise and global reach.
Britain’s Frasers Group had purchased Missguided out of administration in June 2022 for 20 million pounds, edging out competitors including Shein, Boohoo and JD Sports.
Missguided had appointed Teneo Financial Advisory as administrator after a winding-up petition was issued by its suppliers, which were owed millions.
Once a British success story, Missguided was the subject of a highly entertaining, four-part documentary titled “Inside Missguided: Made in Manchester.” The series charted the highs and lows of the brand, which had struggled to keep up with competitors such as Boohoo and Asos due to supply-chain challenges.
The Missguided deal comes in the wake of Shein’s new, long-term agreement with Authentic Brands Group for its Forever 21 brand.
Under the terms of that partnership, Shein will design, manufacture and distribute a line of Forever 21 apparel and accessories that will include sportswear, activewear and swimwear, among other categories.
The collection, which will sport the co-branded label Forever 21 x Shein, will be sold exclusively online on Shein’s sites in the U.S. as well as part of Europe and Australia.
This deal follows the news in August that Shein had acquired a one-third interest in SPARC Group, a joint venture between Authentic and Simon Property Group. SPARC is the core operating partner of Forever 21 in the U.S. At the same time, SPARC became a minority shareholder in Shein.
