Frasers Group puts online fashion brand into administration – just weeks after £52m acquisition

Shirebrook-based Frasers Group has put Matches, the online clothing business, into administration -just weeks after buying it for £52m.

Frasers had posted a notice of intention (NOI) to appoint administrators to Matches through law firm DLA Piper on Thursday afternoon (March 7).

In a statement this morning, Frasers said: “Since we 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 try 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.

“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.”

The deal to buy Matches was part of Frasers’ “elevation strategy” aimed at extending its higher-end offering to consumers

On announcing the deal to buy Matches on December 20, Michael Murray, CEO of Frasers, said: “Matches has always been a leader in online luxury retail and has incredible relationships with its brand partners. This acquisition will strengthen Frasers’ luxury offering, further deepening our relationships and accelerating our mission to provide consumers with access to the world’s best brands.

“Whilst the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for Matches.”

Matches generates the majority of its revenue internationally, with the business delivering to 150 countries outside the UK.

The business has been loss-making in recent years. It ended 31 January 2023 with a loss of £33.5m.