(Alliance News) - Frasers Group PLC on Friday announced that Matches will be put into administration, just over two months after acquiring the online luxury fashion retailer.
The Shirebrook, England-based owner of the Sports Direct, Frasers and Flannels retail brands purchased London-based Matches from private equity firm Apax Partners LLP for approximately GBP52 million.
Matches had reported an adjusted loss before interest, tax, depreciation and amortisation of GBP33.5 million for its financial year that ended on January 31, 2023. Regardless, Frasers Chief Executive Officer Michael Murray said he was "confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth".
On Friday, however, Frasers said that Matches' directors have decided to put the business into administration.
Frasers explained that since the acquisition, and despite its support, Matches "has consistently missed its business plan targets and...has continued to make material losses".
The firm continued: "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 [Frasers] considers to be viable."
Shares in Frasers were trading 1.9% lower at 791.00 pence in London early on Friday.
By Emma Curzon, Alliance News reporter
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Frasers Group (FRAS)
