Chinese founded fashion giant Shein are in talks with Mike Ashley’s Fraser Group to buy the Manchester based online retailer Missguided.
Frasers bought missguided 18 months ago from administrators and Sky News reported that this will Shein’s first acquisition of a UK brand.
Shein are based in Singapore and are valued at around £53 billion after a global expansion and the fashion giant have bought different rival firms.
Shore Capital analyst Eleonora Dani said: “Shein’s prospective acquisition of Missguided signals intensifying competition in the UK online fashion market.
“For Missguided, which recently navigated financial distress only to be rescued from administration by Frasers Group, the transaction would serve as a liquidity event, providing an infusion of capital that enables brand stabilisation and growth under the umbrella of a globally recognised name.
“Additionally, the transaction accentuates the evolving international scope of the online fashion retail sector, further amplifying competitive pressures in an already saturated market.”
