08 March 2024 , 08:35
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Matchesfashion will be put into adminstration administration after the parent company, Mike Ashley's Frasers Group, announced on Friday that it can't provide the funds needed to keep the business afloat.
Matches, which employs just under 700 people according to its latest accounts, has been making "material losses" and consistently missing its targets, Frasers revealed. Frasers, owned by Sports Direct, stated that the money required to keep Matches running would be much more than what they consider viable.
Frasers only purchased Matches in December, in a deal worth £52 million. It was bought from private equity firm Apax Partners, who had owned the retailer since 2017. In recent years, the business has been making losses, and in the year ending January 2023, it made a loss of £33.5 million.
Frasers told shareholders on Friday: "Since Frasers Group acquired Matches, the business has consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses. Whilst Matches' management team has tried to find a way to stabilise the business, it has become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable."
Frasers concluded by saying: "In light of this, Frasers has been informed that the directors of Matches have taken the decision to put the Matches group into administration. Frasers remains committed to the luxury market and its brand partners."
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Though Matches primarily sells online, it also operates a handful of stores in London.