Alteri Investors acquires 50% stake in fast fashion brand Missguided
Alteri Investors has taken a 50% stake in British fast fashion brand Missguided and has provided the business with a cash injection and the support needed to guide it through the current supply chain challenges that have hit the industry.
The deal will also provide the Manchester-based, online fashion business with a platform to return to "sustainable profitability".
Missguided had been on the search for an investor for a number of months and at one stage it was reported that sports and fashion plc JD Sports was interested in taking a majority stake, but it was said that founder Nitin Passi was reluctant to concede full control.
Under the terms of the Alteri deal, the investor will acquire 50% of the group's equity and will appoint two of its directors to the Missguided board. An executive chairman will also be appointed with "strong retail and turnaround" experience and talks with a preferred candidate are underway.
The investment will be made from Alteri’s second investment vehicle, launched in August 2019, with the backing of funds managed by affiliates of Apollo Global Management.
Among the short-term priorities for the investors and business will be to restock following the recent supply chain challenges that have hit the fashion industry. In the medium term, the focus will shift to initiatives aimed at delivering sustainable growth.
Passi, who founded Missguided in 2009, said of the deal: “Earlier this year we launched a process to identify a partner to help us navigate short-term challenges but more importantly deliver on the great opportunity that exists for this brand. Alteri’s deep sector expertise, proven track record and focus on driving operational efficiency make it the right partner. We look forward to working closely with the Alteri team as we return Missguided to profitability.”
Alteri Investors founder and CEO Gavin George added: “Missguided is a much-loved brand with an entrepreneurial spirit which has seen it stay exciting and relevant over more than a decade and build a meaningful share of competitive markets in the UK, the US and beyond. Alteri’s success in this process is testament to the breadth of our operational transformation capabilities and our retail sector expertise.
"As a digital pure-play retailer, Missguided is exposed to core markets enjoying strong double-digit growth, and the brand is very well-placed to capture the opportunity that these positive market dynamics present. We are looking forward to working with Nitin and the management team to help the business achieve its considerable potential.”
In the year to March 2021, Missguided achieved sales of £287m with the UK and US being its biggest markets.