For so long an enigma, Chinese fast fashion colossus Shein has spent much of the last year on a charm offensive, culminating this week with a very busy few days on both sides of the pond.
After announcing its first design collaboration with Forever 21, it turned out that it was saving the bigger news for the U.K., as it confirmed that it is buying the Missguided brand name from parent Frasers Group.
The acquisition comes just over a year after sportswear to fashion conglomerate Frasers Group rescued the business from administration in a $24 million (£20 million) deal.
Shein is acquiring Missguided’s intellectual property and trademarks, but not the real estate or Missguided’s employees, both of which have been integrated into the wider Frasers’ fashion division.
For its part, Shein has pledged to use its global expertise to “reignite” the brand, which was founded in 2009 by Nitin Passi and rapidly grew to become one of the U.K.’s hottest online fashion businesses, focused on younger women.
However, it suffered from a series of supply chain issues and was hit by rising freight costs and governance scandals and eventually Missguided fell into administration in May 2022 before being bought by Frasers Group a month later.
Shein executive chairman Donald Tang said of the acquisition: “Shein aims to reignite the Missguided brand, capitalizing on its unique brand personality, and fuelling its global growth through Shein’s on-demand production model, unparalleled e-commerce expertise and global reach.”
Shein Collaborates With Forever 21
Shein has also extended its partnership with Forever 21 owner Authentic Brands Group (ABG) to create a new sub-brand, as it looks to bolster its fashion offer and reach.
The move will see Shein design, manufacture and distribute a line of Forever 21 apparel and accessories including sportswear, activewear and swimwear.
The Forever 21 x Shein range will follow the fashion giant’s on-demand production model and will be sold online exclusively on its websites in the U.S., parts of Europe and Australia.
“We’re thrilled to bring the renowned Forever 21 brand to Shein customers using our manufacturing capabilities and online store,” Tang said. “Forever 21 and Shein share a mission to deliver products that our customers love at an incredible value. This exciting new aspect of our partnership with Authentic furthers our goal of making fashion accessible to all and we look forward to bringing this to life for our customers.”
Chairman and chief executive of ABG Jamie Salter added: “Shein’s innovative approach to engaging with consumers gives it the ability to deliver trends at speed. With an evolving retail landscape, where digital interaction has become the cornerstone of ecommerce, Shein has led the way in redefining how brands connect with consumers.”
The partnership comes hot on the heels of the August 2023 announcement that Shein had acquired an approximately one-third interest in SPARC Group, a joint venture that includes Authentic and Simon Property Group and the core operating partner of Forever 21 in the U.S. In tandem, SPARC became a minority shareholder in Shein.
As part of the deal, the online fashion giant will list Forever 21’s apparel and accessories on its website and has “the opportunity to test” its merchandise in the retailer’s stores across the U.S.
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