Mike Ashley’s Frasers Group is reportedly in talks to sell online fashion brand Missguided to Chinese online fashion giant Shein.

According to Sky News, the two companies are in detailed negotiations around striking a possible deal.

The outlet reports that the companies have been in discussion over a deal for several weeks, with one source adding that should a deal manifest, it would likely also include Missguided assets such as its head office in London.

Frasers Group bought Missguided out of administration for £20 million last year after the brand collapsed, attributing its failure to factors including increased supply chain costs, general cost inflation and softening consumer confidence in a competitive market.

Shein recently acquired a third of Forever 21-owner SPARC and partnered with global brands and third-party sellers to expand its product offering in a new marketplace.

Reports emerged in March that Shein was aiming to raise around $2 billion in new funding with aims for a US listing later in the year.

No such listing has emerged to date, with US lawmakers having called on the Securities and Exchange Commission in May to halt the initial public offering of Shein until it resolves accusations of forced labour.

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