Chinese fast fashion behemoth SHEIN is currently in talks with Frasers Group to acquire the British fashion brand Missguided, Sky News learned on September 16. This marks SHEIN’s first stake in a British brand, as it charts its path to becoming the world’s biggest fashion retailer.
The two companies have reportedly been discussing a potential deal for several weeks, which is expected to include an acquisition of Missguided as well as other Frasers Group intellectual property. Insiders say the head office of Missguided is likely to be retained by Frasers Group if the deal goes off, but a timeline for the announcement remains unclear, as does the likelihood of the deal itself closing.
This comes a month after SHEIN struck a deal with the parent company of Forever 21, the American fashion retailer that filed for bankruptcy in 2019 after failing to make the shift to online retail. Last month, SHEIN acquired a one-third stake in Forever 21’s parent company, SPARC Group, while the parent company took an undisclosed minority stake in SHEIN.
Forever 21 has been preparing to make a comeback this year with smaller, better-stocked stores curated for local buying habits. As part of the deal, its online sales will also be boosted by distribution on the SHEIN platform, which boasts 150 million users worldwide.
If the negotiations with Frasers Group are successful, Missguided will join SHEIN’s current portfolio of 10 brands which includes underwear brand Luvlette, beauty brand SHEGLAM, pet products provider PETSIN, activewear brand GLOWMODE, and footwear brand Cuccoo.
In 2022, SHEIN posted 22.7 billion USD in global sales, taking a marginal lead over H&M’s 22.3 billion USD but some way behind Zara’s 35.2 billion USD. SHEIN executives are aiming to double annual sales to reach 58.5 billion USD by 2025.
The company is currently valued at 66 billion USD, a self-imposed downgrade from the previous figure of 100 billion USD, as it prepares to launch an initial public offering in the US.