Missguided secures ‘significant’ investment
Current management will be boosted by the addition of an executive chairman with ‘strong’ retail and turnaround experience, as well as the addition of two directors from Alteri Investors
Missguided has announced it has secured a “significant” investment deal with London-based investors, Alteri.
It revealed Alteri’s investment, comprising both debt and the acquisition of 50% of the group’s equity, will 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.
In the year to March 2021 it achieved sales of £287m, with the UK and US its two largest markets.
With the backing of Alteri Investors, the retailer said its management will be able to “drive improvement” in Missguided’s performance, working with management 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 current management will be boosted by the addition of an executive chairman with “strong” retail and turnaround experience, and discussions with a favoured candidate are well progressed. The board will be further reinforced with the addition of two directors from Alteri Investors.
According to Missguided, 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. (NYSE: APO).
Nitin Passi, Missguided founder and CEO, said: “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.”
Gavin George, Alteri Investors founder and CEO, added: “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.”
