Online fast fashion retailer Shein is reportedly in talks with UK-based retail company Frasers Group to acquire online fashion brand Missguided.

The BBC reported that the negotiation comes after Frasers Group purchased the online fashion brand in a deal valued at £20m ($24.7m).

Sky News, which first reported the story, said that the two parties have been in “detailed discussions” for several weeks about a deal. However, there is no certainty that it will materialise.

If a transaction is reached, Shein is expected to buy Missguided's brand and other intellectual property while Frasers Group retains the brand’s head office.

Founded by entrepreneur Nitin Passi, Missguided has been struggling to cope with supply chain problems, rising freight costs and increasing competition from rivals.

In late 2021, Alteri Investors made a significant investment in Missguided. However, the brand subsequently entered into administration in May last year.

Shein, which is headquartered in Singapore, reported strong performance over the pandemic.

The company is believed to have been valued at approximately $66bn earlier this year.

In May this year, the online fashion retailer officially announced plans to open 30 stores in the UK in 2023.

According to a Sky News report, the company now operates in more than 150 countries.

Last month, Shein announced a strategic partnership with SPARC Group, a joint venture that includes Authentic Brands Group and Simon Property Group.

The deal saw Shein acquire approximately one-third of interest in SPARC Group. In return, SPARC Group became a minority shareholder in Shein.