Alteri Investors has acquired a 50% stake in the struggling online fashion retailer Missguided, giving the brand the liquidity needed to ride out the ongoing supply chain crisis.

The investment in Missguided Limited, owner of the fast-fashion brand, follows a difficult year for the company due to the financial impact of the supply chain crisis and the pandemic.

Nitin Passi

Nitin Passi said Alteri’s ‘sector expertise, proven track record and focus on driving operational efficiency make it the right partner’ for Missguided

The news comes after it first emerged the retailer was looking to secure emergency funding back in October.

Under the terms of the deal, Alteri will take over Missguided’s existing debt and 50% of the company’s equity. In a statement, the specialist retail sector investor pledged to “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”.

Two directors from Alteri will also be added to the Missguided board, while an additional executive chair with “strong retail and turnaround experience” will also be appointed. Alteri said it is in discussions with a “favoured candidate” for this position.

Alteri, which is backed by private equity firm Apollo, has experience in turning around struggling retailers and also invests in high-performing retail companies. It purchased UK company Bensons for Beds in 2019.

The rescue deal for Missguided follows a challenging period for UK fast-fashion retailers amid supply chain disruption. 

Last week, Boohoo issued a profit warning, while In The Style also reported a drop in profits, with both citing the ongoing disruption and growing returns rates as reasons behind the falling profits

Missguided founder and chief executive Nitin Passi said: “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 chief executive Gavin George said: “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.”

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