Frasers Group has put luxury etailer Matches into administration less than three months after buying it.
The retail empire said on Thursday that the fashion business had “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 said.
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It continued: “In light of this, Frasers has been informed that the directors of Matches have taken the decision to put the Matches group into administration.”
The retail group snapped up Matches – formerly Matchesfashion – in a £52m deal from Apax Partners, a fraction of the £600m the private equity owner had invested in the retailer.
Retail industry sources told Sky News that Frasers had tried to secure sizeable discounts from the business’ suppliers in recent weeks, with some brands thought to have been disgruntled by the approach adopted by the group.
It is unclear whether the Mike Ashley controlled group would seek to retain control of the business through a pre-pack deal.
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