Frasers Group has offloaded the intellectual property and trademark of Missguided to Shein while it will retain its stores and employees which have now been integrated into Frasers’ fashion division.

The transaction, which comes just a year after Frasers bought Missguided, will enable Mike Ashley’s group and the Chinese company to explore collaboration across the brand portfolio.

Michael Murray, CEO of Frasers Group, said: “With I Saw it First and Missy Empire, we now have a foothold in women’s digital-first 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.

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

Frasers bought Missguided out of administration for £20 million last year when the company fell victim to supply chain problems, rising freight costs and increasing competition.

Shein will manage and license Missguided through Sumwon Studios, a joint venture it has set up with Nitin Passi who set up Missguided in 2009.