Frasers Group is in talks to acquire Matchesfashion under a deal that would mean heavy losses for the retailer’s private equity backer, Apax Partners.
According to Sky News, city sources claimed Frasers Group was one of a small number of parties who engaged in talks earlier in the week.
Fashion giant Next is also thought to have expressed interest in snapping up Matchesfashion.
According to one insider, if the acquisition is completed, Frasers is likely to pay in excess of £50m for the fashion retailer.
Insiders have also claimed that the potential deal would be a solvent one.
Although Matchesfashion’s performance has improved under its CEO Nick Beighton, the former Asos chief who joined the company in 2022, it has still been affected by the slowdown in global luxury goods revenues.
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Apax is believed to have invested up to £600m into the fashion retailer since acquiring the business six years ago.
Buying Matchesfashion would give Frasers Group a considerable boost to its “elevation” strategy, according to Sky News.
The news comes after Frasers Group pulled out of a SportScheck acquisition last month, as it sought a pre-pack deal instead.
The retail group said it had exercised its right to back out of the deal amid the financial crisis surrounding SportScheck owner Signa Holdings.
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