Chinese-founded fast fashion giant Shein has made its first acquisition in the UK with the purchase of the Missguided brand from Mike Ashley's Frasers Group for an undisclosed sum.

Now headquartered in Singapore, Shein said it plans to "reignite" the Missguided brand 17 months after it fell into administration, paving the way for its £20 million acquisition by Frasers. Shein is doubling down on the UK as it battles competition from Chinese newcomer Temu, which has already matched Shein's scale in the US and is expanding in the UK with an aggressive marketing campaign launched as it entered the market in April.

Shein is buying Missguided's intellectual property and trademarks but the Manchester-based company's staff and real estate will remain with Frasers, which has folded them into its fashion division.

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Frasers chief executive Michael Murray, who took over from this father-in-law Mr Ashley last year, said the group's I Saw It First and Missy Empire brands already give it a foothold in women's online fashion.

“Retaining the combined Frasers fashion teams whilst rationalising our portfolio in this space to focus on fewer brands makes a lot of sense in the current climate,” Mr Murray said.

“We are also excited about the ongoing discussions around further collaboration between Frasers Group and Shein.”

Shein, which is valued at approximately £53 billion, will license the Missguided brand to Sumwon Studios, a joint venture between Shein and Missguided founder Nitin Passi. Goods will be sold on both and the Shein website.

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“The joint venture we have entered ushers in a new format of partnerships for Shein, as part of our unwavering commitment to meet customer demand” executive chairman Donald Tang said.

“Shein aims to reignite the Missguided brand, capitalising on its unique brand personality, and fuelling its global growth through Shein's on-demand production model, unparalleled e-commerce expertise and global reach.”