In news that has disappointed luxury shoppers everywhere, Matches is set to shut down . The luxury online retailer was bought by Frasers Group just two months ago, but the conglomerate has found it to be untenable to turn the business around and has chosen to appoint administrators.
“While 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 Group said in a statement to the London Stock Exchange. “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.”
Frasers purchased the business for £52 million in December in the hope of strengthening its luxury portfolio. The conglomerate also owns the online retailer Flannels, as well as a number of more affordable fashion brands including Jack Wills, Missguided and I Saw it First.
At the time of the acquisition, Frasers Group CEO Michael Murray said that he believed that they could make the business profitable again. “While the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for Matches,” he said.
Matches – which started as a physical store in London in the 1980s and went online in 2007 – became one of the most popular luxury online retailers, hosting hundreds of leading designer fashion brands on its site. However, it – alongside its competitors – has struggled since the pandemic hit and the landscape has changed with increasing costs, pressure to apply discounts, and having to compete with luxury brands that have chosen to host e-commerce on their own sites instead.
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