Frasers Group has announced that Matchesfashion will enter administration due to consistent failure to meet targets and significant financial losses.
The online luxury retailer, acquired by Frasers in December for £52m, requires extensive restructuring that is beyond what Frasers considers feasible.
According to Frasers, the investment needed for Matchesfashion to remain operational exceeds the group’s acceptable limits. Consequently, the directors of Matches have decided to place the company into administration.
Frasers, underlining its dedication to the luxury market and its partnerships, purchased Matches from its previous owners, private equity firm Apax Partners, during a downturn in the luxury sector.
Apax had acquired Matches in 2017, investing as much as £600m. However, the company faced numerous challenges, culminating in losses of £33.5m last year.
