The collapse of Missguided comes as fast fashion sales grow in Australia, following a period of decline during the pandemic.
Australia was among the the UK-based etailer's top five international markets, with The Iconic and Myer also stocking the brand nationally.
Dan Smith, Daniel Butters and Benji Dymant of Teneo Financial Advisory were appointed as joint administrators of Missguided earlier this week, after failing to secure a rescue deal.
Frasers Group has since acquired certain intellectual property of Missguided for a cash consideration of £20 million, with plans to trade the business.
Following completion, the business will be operated by the administrator under a transitional agreement for a period of approximately eight weeks.
It is then the intention that Missguided will operate as a standalone business within the Group.
Frasers Group CEO Michael Murray said the Group will also leverage digital insights from the brand.
"We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of FG's platform and our operational excellence," he said.
"Missguided's digital-first approach to the latest trends in women's fashion will bring additional expertise to the wider Frasers Group."
Despite the fast fashion brand's struggles in the UK, the market remains buoyant in Australia, according to business information firm IBISWorld.
Revenue for the Australian fast fashion industry rose by 6.3% in 2020-21, as shopping activity recovered on the back of easing COVID-19 movement restrictions.
Pent-up consumer demand upon reopening of physical retail stores is also expected to support revenue growth in the current year, according to IBISWorld.
The expansion of international fast fashion retailers into Australia is projected to drive industry growth over the next five years.
Greater demand from consumers who have been exposed to global brands through social media is anticipated to provide international labels with the confidence to pursue expansion in Australia.
Following the lead of Japanese retailing giant Uniqlo, more retailers from Asia are projected to open local stores over the period as they reach saturation in other markets.
Furthermore, persistent consumer demand for the latest fashion-forward styles and rising disposable incomes are forecast to drive sales in new and existing fast fashion stores over the next five years.
According to IBISWorld, the companies holding the largest market share in the Australian fast fashion category include Cotton On Clothing Pty Ltd, Group Zara Australia Pty Limited, Uniqlo Australia Pty Ltd, H&M Hennes & Mauritz Pty Limited and Fast Future Brands Pty Ltd.