Page 32 - December 2021 / January 2022

MARK FAITHFULL

Following the

Money

Mark Faithfull crunches the numbers as he looks at

analysis and expansion that reflects changing markets.

Missguided the latest hit by fashion IKEA takes over former Topshop flagship
supply chaos The owner of furniture retail giant IKEA has bought Topshop’s
The perfect storm tearing through the global fashion former flagship store on Oxford Street, creating a London West
supply chain has left online UK fast fashion retailer End home for the Swedish mega-brand. The move reflects the
Missguided seeking investment to bolster its balance ongoing change in direction for IKEA – which has begun building
sheet. Once a darling of female Gen Z consumers, out an urban format store portfolio across Europe.
leading to it opening a number of flagship stores, The Topshop flagship was once the flagbearer for the Arcadia
Missguided has been hit by price rises and delivery retail empire. The sale to IKEA had been widely rumoured for
disruption and as a result Missguided could be a some weeks and the deal to buy the leasehold on the building,
potential target for investment or even a takeover, which encompasses the 100,000sq ft former Topshop store,
with rumours swirling of potential banking and rival London’s famous Nike Town store and a Vans footwear store,
retail interest. should complete in January.
According to Sky News Alteri Investors, backed by IKEA said that it plans to open its Oxford Street store in Autumn
private equity giant Apollo Global Management, is the 2023, focusing on homewares and accessories, while the retailer’s
latest name linked to buying a stake in Missguided as full range of furniture will also be available for home delivery.
the online fashion retailer looks to recapitalise. Alteri
Investors, which has backed a number of retailers
across Europe, including CBR Fashion Group and
Bensons for Beds, is understood to be interested
in acquiring a significant minority shareholding in
Missguided in return for an investment of “tens of
millions of pounds”.
Discussions between Alteri and Missguided’s Founder,
Nitin Passi, are part of the latter’s search for external
investment, thought to have become increasingly urgent
in recent weeks amid growing financial pressures on
the business because of supply chain challenges and
rising costs. Existing shareholders are also expected
to inject at least £10M as part of the company’s
recapitalisation plan.
Missguided has been the subject of a number of
rumours around potential suitors. In September,
UK athleisure retail chain JD Sports Fashion was
in takeover talks with Passi before negotiations
fell through. Takeover completes at French Connection
French Connection shareholders have backed the $39M takeover
of the fashion brand, placing the company in private hands for the first
time since 1983.
Apinder Singh Ghura bought a 25 per cent stake in French
Connection from Mike Ashley’s Frasers Group in February and has
teamed up with Manchester-based Amarjit Singh Grewal and KJR
Brothers, to complete the deal, which comes after the three acquired
the Bench fashion brand in March via a group called Wraith Holdings
International.
French Connection’s 75-year-old Chair and Chief Executive,
Stephen Marks, who Co-Founded the chain in 1972 and owns nearly
42 per cent of the company, is to receive about $16.3M for his stake in
the business. French Connection operates 67 stores and concessions
in the UK and 161 locations overseas under franchises and licences.
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32 RETAIL & LEISURE INTERNATIONAL DECEMBER 2021 / JANUARY 2022