Frasers Group puts Matchesfashion into administration

Matchesfashion has been placed into administration as the new owner, Frasers Group, battles with discontent from suppliers. The troubled retailer, rebranded to its original name Matches last year, reportedly owes payments to numerous suppliers, prompting an exodus of brands that no longer wish to be stocked on the site.

“While Matches’ management team has tried to find a way to stabilize 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 Group stated. “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.”

In the context of struggling e-tailers experiencing financial difficulties, a common practice is to prioritise payments to the most prestigious luxury brands, ensuring that crucial relationships are maintained. This means that outstanding invoices from luxury houses like Saint Laurent and Gucci take precedence over those from smaller brands, potentially safeguarding these significant partnerships. At the time of writing, Saint Laurent has over 1,000 products listed on Matches’ womenswear store.

'Too much change would be required...'

When Frasers Group bought the company for 50 million pounds late in 2023 as part of its elevation strategy, it was a far cry from Matches’ valuation of 1 billion in 2017 when it was acquired by Apax Partners.

Beginning life as a small boutique in Wimbledon, at the height of its success, Matches attracted over 100 million annual visits to its website and app. Selling over 500 brands across 170 countries, Apax Partners is said to have invested as much as 600 million pounds of its investors' money in Matchesfashion, reported Sky News, after buying the site from its founders six years ago.