Frasers’ Share Price Rose 1.77% on Divestment of Missguided IP

The Frasers Group PLC (LON: FRAS) share price rose 1.77% after the British retail, sport and intellectual property group announced that it had divested the IP of Missguided to SHEIN. This is a strategic move to optimise the company’s brand portfolio and is aligned with the firm’s disciplined approach to brand management.

Under the terms of this significant transaction, SHEIN is set to acquire the IP and trademarks associated with the Missguided brand. In this reshaping of assets, Frasers Group, however, has chosen to retain ownership of Missguided's real estate and its dedicated workforce, effectively integrating them into the Group's fashion division. 

The decision not only marks a substantial shift in brand ownership but also underscores the Group's commitment to nurturing and developing its fashion-related ventures. The divestiture of Missguided's IP to SHEIN opens up a world of possibilities and opportunities for both entities.

The move has set the stage for exciting discussions and potential collaborations between the two brands, making it a forward-thinking decision in the ever-evolving retail landscape. 

Frasers Group's commitment to a disciplined brand management approach showcases their dedication to optimising their brand portfolio. By choosing to divest Missguided's IP and teaming up with SHEIN, they are not only streamlining their assets but also capitalising on the strengths and capabilities of each brand.

The acquisition of Missguided's IP by SHEIN represents a significant development in the fashion and e-commerce sectors. These two industry giants are now poised for an exciting journey that could redefine the landscape of online fashion retail.

As the two firms explore opportunities for collaboration and synergy, consumers and industry observers alike eagerly await the innovative developments that may emerge from this strategic partnership.

Michael Murray, CEO of Frasers Group, said: “With I Saw it First and Missy Empire, we now have a foothold in women's digital-first fashion. Retaining the combined Frasers fashion teams whilst rationalising our portfolio in this space to focus on fewer brands makes a lot of sense in the current climate. We are also excited about the ongoing discussions around further collaboration between Frasers Group and SHEIN.”

Frasers' share price. 

The Frasers Group share price rose 1.77% to trade at 809.10p, from Friday’s closing price of 795.00p.