Frasers Group has acquired fashion retailer Psyche’s stores and online business for an undisclosed sum.

Psyche is an upmarket fashion retailer that sells labels including Balmain and Kenzo, and currently operates two stores in Middlesbrough and Durham.

The business was founded in 1982 and operated as an independent retailer prior to this acquisition.

Psyche founder and chief executive Steve Cochrane, who will remain in post following the sale, says Frasers’ takeover has secured the future of the business and its 58 staff.

“After 38 years as an independent fashion retailer we have never seen such uncertainty surrounding the pandemic with local lockdowns, it is great to have the security and backing of one of the strongest UK retailers to continue employing our talented staff and serve our loyal customers,” Cochrane said.

“Merging with Frasers Group will allow us to grow and expand. It will give us economies of scale and efficiencies by being part of a large Plc.”

Frasers Group is understood to be in the running to take over Debenhams and Arcadia chain Topshop after both businesses fell into administration last year.