After its new user Mike Ashley’s Frasers Group called in officials, the leisure clothing store Matchesfashion is cutting 273 jobs, more than half of its workforce.
Frasers purchased Games from the private equity firm Apax Partners three months ago for $52 million in cash. After the enterprise had “persistently missed its business strategy targets” and had made costs, Framers said it was not willing to fund a turn.
Suits makes the majority of its revenue abroad, shipping to 150 nations besides the UK, by specialising in pleasure labels like Gucci and Dr Martens, both online and through three London locations. At its stores and head business, it has 533 employees.
When Teneo’s combined administrator, Benji Dymant, was appointed on Friday, instant redundancies had been made so that the business could trade as the sale negotiations progressed along with a review of its potential structure.
According to him, “Matchesfashion has experienced a strong decline in demand over the last year, as a result of well-known pressure on voluntary spend, stemming from the high prices and higher interest micro culture,” he said.
Since Frasers’ purchase of Matchesfashion in December 2023 and an additional revenue treatment, investing has continued to decline, causing the business’ cash needs to decline. In the end, this led to the managers making the hard choice to put the company in administration.
The issues at Matches arise from problems in the wider comfort industry, which have slowed as even more wealthy people have been negatively impacted by rising energy costs and higher interest rates on debts and loans. Online scientists have experienced particular hardship.
Retailer Farfetch and North Korean e-commerce leader Coupang reached a contentious save agreement in January via a prepack management. Yoox Internet- a- Porter by Richemont, which had been planned for sale to Farfetch, is incredibly profitable.
The Matches control team has made it clear that too much change may be necessary to rebuild the company, according to Frasers in a statement.
Extends went on to say that the ongoing funding needs for Games may be “far in excess of the quantities” it would consider to be “viable.”
Broadens has been informed that the Matches group’s directors have made the decision to put the Matches party in administration in light of this, the statement read.
The Flannels luxury trendy chain, which is owned by Frasers, said it would continue to support the high-end financial sector. When it made the acquisition of Matches in December, it claimed the transaction represented a chance to improve Frasers’ luxury offering.
Tom and Ruth Chapman, husband and wife, established Matches as a shop in Wimbledon, London, in 1987. After selling Matchesfashion.com to private equity buyers in 2017, The Chapmans, who owned a lot interest, received about $400 million in cash.
To add to its extensive financial portfolio, Frasers has a long history of acquiring usually depressed sports, luxury, and associated brands at lower prices. has recently acquired the online fast-fashion businesses Missguided and I Saw it First as well as acquiring Jack Wills, Gieves & Hawkes, Evans Cycles, and Game.
It became known last week that Frasers had purchased Wiggle, an online store of riding and running equipment, for less than £10 million.
The economic woes that Matchesfashion are experiencing show the general decline in the comfort goods industry, according to Victoria Scholar, head of investment at engaging investor. Due to a subdued post-Covid treatment in China and broader global economic pressures, high-end luxury demand has been declining.