Mike Ashley’s Frasers Group PLC on Wednesday said it has bought fast-fashion retailer Missguided Ltd out of administration in a £20 million deal.

On Tuesday it was announced that Missguided had fallen into administration after failing to secure a last-minute buyer.

Online retailing peer boohoo Group PLC had been in talks to buy the business in a pre-pack administration deal, while Asos PLC and JD Sports Fashion PLC also were reported to have been interested.

However, on Wednesday retail group Frasers said it had acquired certain intellectual property of Missguided, Mennace Ltd, and Missguided (IP) Ltd for £20 million cash. This adds to Frasers retail portfolio of House of Fraser and Sports Direct, among others.

Frasers said that, following completion of the deal, Missguided will be operated by the administrator under a transitional agreement for around eight weeks. After, it intends for Missguided to operate as a stand alone business within the wider group.

Chief Executive Michael Murray said: ‘We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of Frasers Group’s platform and our operational excellence.’

‘Missguided’s digital-first approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group,’ he added.

Shares in Frasers were up 1.7% to 702.50 pence each in London on Wednesday morning.

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