Frasers fashion brand falls into administration for months after £52 million deal

A FASHION brand owned by Mike Ashley’s Frasers Group has gone into administration just months after it was bought for £52 million.

Matchesfashion has been placed into administration after parent company Frasers said it was no longer prepared to provide the money needed to keep the company running.

The online brand sells luxury fashion from designer brands such as Balenciaga, Gucci and Valentino.

Matches started 30 years ago as one store in Wimbledon, London, and now has six locations.

No store closures or job losses have been announced yet.

Frasers, which also owns a large number of well-known names such as Sports Direct, Game and House of Fraser, acquired Marchesfashion from private equity firm Apax Partners in December.

The brand employs just under 700 people, but Frasers admitted Matches “consistently” missed the mark and suffered “material losses”.

In the year to the end of January 2023, the brand made a loss of £33.5 million.

Retail sources have suggested that Frasers has attempted to secure significant discounts from suppliers in recent weeks.

Frasers told shareholders on Friday: “While Matches’ management team has attempted to find a way to stabilize the business, it has become clear that too much change would be required to restructure it, and that ongoing funding needs would further reduce the amounts would exceed. that the group considers viable.

“In light of this, Frasers has been advised that the directors of Matches have taken the decision to place the Matches group into administration.

“Frasers remains committed to the luxury market and its brand partners.”

Matchesfashion is the only brand under the Frazers umbrella that is struggling.

We have seen two Flannels stores close in recent months, one in Bolton and one in Bradford.

But it seems the Frazers group has put its efforts elsewhere.

The group has opened several ‘new concept’ stores in key locations.

The company recently announced that it will take over the former John Lewis site in the Queensgate Shopping Centre, Peterborough.

The concept stores feature a range of Frazer brands, including the Sports Direct store, beauty salons and products from USC, Jack Wills and GAME.

What happens to the main street?

Many retailers have struggled to make ends meet in recent years.

The pandemic was a heavy blow, as many shops had to close during the lockdown.

Since then, energy costs have risen and more consumers than ever are choosing to order online instead of going to the store.

This leaves some retailers struggling with budgets and having no choice but to close stores to cut costs.

The Body Shop is currently going into administration and has announced plans to close half of its 198 stores, seven of which were closed last week.

Boots revealed it would close 300 stores over the next year as part of plans to develop its brand.

WHSmith told The Sun it has no plans to open any more high street stores as it wants to focus on the travel side of its business.

Barclays will begin pulling down the shutters at fourteen locations in England, three in Wales and three in Scotland from April.

Even thrift stores are having a hard time Oxfam confirmed last year that it would close eight of its UK stores.

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