Alteri says its investment in Missguided Limited, comprising both debt and the acquisition of 50% of the group’s equity, will provide the business with the liquidity and support it needs to overcome short-term supply chain challenges, as well as a platform to return the business to sustainable profitability.
Missguided was founded in 2009 as an online-only digital ‘pure play’ retailer and fashion brand by chief executive Nitin Passi. Today, it is a fast fashion business serving in excess of 4m active, 18–30-year-old customers in over 180 countries worldwide.
In the year to March 2021, it achieved sales of GBP287m, with the UK and the US its two largest markets.
Alteri Investors says with its backing, management will be able to drive improvement in Missguided’s performance. After addressing short-term priorities including restocking following recent supply chain challenges, Alteri Investors will work with management to develop the strategy to transform the Group’s profitability. In the medium term, the focus will shift to initiatives aimed at delivering sustainable growth.
The current management will be boosted by the addition of an executive chairman with strong retail and turnaround experience, and discussions with a “favoured candidate” are said to be well progressed. The board will be further reinforced with the addition of two directors from Alteri Investors.
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, Inc.
“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,” Passi says. “We look forward to working closely with the Alteri team as we return Missguided to profitability.”
Alteri Investors founder and CEO Gavin George adds: “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.”
Earlier this year, a Sky News report claimed sports retail giant JD Sports Fashion Plc was among a number of parties in bid discussions with Passi and the company’s advisers.