London fund set to lose millions following Mike Ashley’s £20m Misguided acquisition
The London private equity firm that injected £50m into fast fashion retailer Misguided, in the months running up to its insolvency, is set to lose tens of millions on its investment.
Alteri Investors is set to lose £20m- £30m after Mike Ashley’s Frasers Group bought the Manchester based retailer for £20m last week, according to Sky News.
In December, the investment fund, which was set up to invest in troubled retail businesses, acquired a 50 per cent stake for £40m, before the fund invested a further £10m in the business as it sought out a new owner.
Founded in 2008 by multi-millionaire businessman Nitin Passi, Misguided gained notoriety for its sexually explicit advertising campaigns and its controversial promotions, including its offer of £1 bikinis.
Frasers now plans to run Misguided on a standalone basis, alongside the other major brands it owns including Jack Wills and Evans Cycles.