Mike Ashley’s Frasers Group has snapped up fast fashion retailer Missguided for 20 million pounds just a day after it fell into administration.

In an announcement to the stock market Wednesday, Frasers said it had bought certain intellectual property of Missguided Limited, along with Mennace Limited, and Missguided (IP) Limited.

Acquisition hungry Frasers Group, whose portfolio includes Flannels, Sports Direct, House of Fraser, and Jack Wills, said Missguided will continue to operate as a standalone business within the group.

Michael Murray, who succeeded founder Mike Ashley as Fraser’s CEO earlier this year, 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."

Missguided called in administrators from Teneo on Monday after it was issued a winding-up order by supplier JSK Fashions which said the retailer owed it millions of pounds, Sky News reported.

Around 140 jobs were thought to be at risk, with one source telling the Guardian that more than 80 people had immediately been made redundant.

Boohoo, JD Sports and Asos were all thought to be interested in a potential acquisition of the womenswear retailer.

Bumpy road

Missguided was founded by Nitin Pass in 2009 as an online-only digital ‘pure play’ retailer focused on 18-30-year-old shoppers.

The retailer quickly became popular in the UK thanks to its cheap prices and the rapid pace at which it churned out new collections. It also partnered with popular reality TV show Love Island to dress its contestants.

But the company’s popularity waned in recent years as it faced growing online competition and increasing consumer demand for more sustainable fashion options.

In March, Missguided launched a “comprehensive restructure of the business” after being hit by supply chain disruptions, inflation and a drop in consumer demand over the previous 18 months.

A month later, founder and CEO Nitin Passi stepped down from his “day-to-day leadership” role as the business called in advisory firm Teneo to explore strategic options.