Frasers Group has bought Missguided out of administration for £20m.

The buyout comes after the online fast fashion retailer fell into the hands of administrators last week after the firm was issued with a winding-up petition by suppliers who are reportedly owed millions of pounds.

Frasers Group, which is controlled by Sports Direct founder Mike Ashley, also owns House of Fraser.

The group’s chief executive Michael Murray said he was “delighted to secure a long-term future” for Missguided.

Administrator Teneo is due to continue running the company for the next 8 weeks while the purchase is completed.

Following the company’s collapse last week customers have been experiencing issues with order fulfillment and accessing refunds.

The BBC reported that around 87 staff will be made redundant and 147 are set to be taken on within the wider Frasers Group.

Missguided will be run as a standalone business within Frasers Group once the process is complete.

In a statement, Murray added: "Missguided's digital-first approach to the latest trends in women's fashion will bring additional expertise to the wider Frasers Group."

Missguided has suffered from increased supply chain costs, general cost inflation and softening consumer confidence in a competitive market in recent months.

Founded by Nitin Passi in 2009, Missguided has grown to reach around 3 million active customers in more than 180 countries worldwide.

Passi stepped down last month as the company’s chief executive as Teneo was appointed to explore options for Missguided’s future.

The company sold a 50 per cent stake last year to investor Alteri, which specialises in distressed firms.

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