News that has disappointed all luxury goods shoppers is that Matches is to cease trading. The luxury online retailer was bought by Frasers Group just two months ago, but the conglomerate found it impossible to change the business and decided to appoint administrators.
"Although the management team at Matches has attempted to find a way to stabilise the business, it has become clear that too many changes will be required to restructure it and the requirements for further funding will be significantly in excess of the amounts the Group considers viable," Frasers Group said in a statement to the London Stock Exchange. "In view of this, Frasers has been informed that the directors of Matches have taken the decision to place the Matches Group into administration. Frasers remains committed to the luxury goods market and its brand partners."
In December, Frasers bought the business for £52m in the hope of boosting its luxury goods offering. The conglomerate also owns 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 chief executive Michael Murray said he believed they would be able to make the business profitable again. "While the global environment for luxury goods is softer, we are confident that by leveraging our industry-leading ecosystem, we will unlock synergies and deliver profitable growth for Matches," he said.
Matches, which started as a physical store in London in the 1980s and switched to online in 2007, has become one of the most popular luxury online retailers, offering hundreds of major luxury fashion brands on its site. However, it, like its competitors, has struggled since the pandemic hit, and the landscape has changed with rising costs, pressure to implement discounts and the need to compete with luxury brands that have instead opted to conduct e-commerce on their own sites. /BGNES