LONDON — British fast-fashion e-tailer Missguided has received “a significant investment” from Alteri Investors, the owner of British bed specialist Bensons for Beds, German women’s brand CBR Fashion and multichannel retailer Versandhaus Walz.
Alteri’s investment, which includes both debt and the acquisition of 50 percent of the group’s equity, will provide the business with much-needed support to overcome Missguided’s short-term supply chain challenges, and eventually 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 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.
Nitin Passi, founder and chief executive officer of Missguided, said Alteri was picked after it launched a process to identify a partner earlier this year because it can deliver on the great opportunity that exists for the brand.
“Alteri’s deep sector expertise, proven track record and focus on driving operational efficiency make it the right partner,” he added.
Gavin George, founder and CEO of Alteri Investors, said Alteri’s experience in the European retail sector and its operational transformation capabilities can really help Missguided to “achieve its considerable potential.”
“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,” he added.
Founded in 2009, the Manchester-based fashion company serves around 4 million 18 to 30 years old customers across 180 countries. The U.K. and the U.S. are two of its biggest markets. In the year ended March 2021, it achieved sales of 287 million pounds, or $380 million.
Similar to its main competitor Boohoo, Missguided is known for its celebrities collaborations and bold campaigns. Most recently, the brand released a capsule with Sean “Diddy” Combs’s label Sean John.