Matchesfashion Enters Administration, 273 Staff Dismissed
Struggling Luxury E-Tailer Bought by Frasers Group Just Two Months Ago
Potential Buyers Sought as Insolvency Practitioners Take Over
London-based luxury online fashion platform Matchesfashion has been placed into administration, resulting in the dismissal of 273 staff members. The move comes just two months after the e-tailer was acquired by retail giant Frasers Group for over 50 million pounds.
Frasers Group had planned to revive Matchesfashion, which had been struggling financially and consistently missed business plan targets. However, the retailer's losses have continued to mount, reaching 398 million pounds in 2022 and jumping again in 2023.
Apax Partners, a London-based buyout firm, has since injected 60 million pounds into Matchesfashion, which sells brands such as Gucci and Prada. However, Frasers Group has decided to continue with the administration process.
Insolvency practitioners are now seeking potential buyers for the Matchesfashion brand. The administration process aims to allow the business to continue trading while potential buyers are sought.
The news comes amid a challenging time for the retail industry, with many businesses struggling due to the rising cost of living, supply chain disruptions, and changing consumer spending patterns.
Matchesfashion's international reach and online presence have not been enough to offset its financial challenges. The company's losses have continued to deepen, leading to the difficult decision to enter administration.
The administration process is expected to take several months, during which time Matchesfashion will continue to operate. Customers can still place orders and expect to receive their purchases as usual. However, the future of the business remains uncertain.
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