Frasers Group has acquired parts of Matchesfashion out of administration in a deal which does not include its stock or its hundreds of employees.
Frasers – which in December bought the struggling online fashion retailer at a bargain price and went on to sell it three months later – said it would buy “certain intellectual property” assets of the business.
As part of the agreement Frasers has granted a licence to Teneo, Matches administrators, to sell the stock it owns through a period of “continued trading for the benefit of the administration”.
A statement issued on Monday evening read: “Brands and suppliers should be aware that all stock held by Matches does not form part of the transaction and the Joint Administrators continue to manage all operations of the business for the benefit of the Administration.”
The retail giant, which owns Sports Direct and Jack Wills, bought MatchesFashion in a cut price deal worth £52m towards the end of last year.
But just three months later it said it would put the firm into administration because it “consistently missed its business plan targets”.
Frasers explained that while Matches management team has tried to find a way to “stabilise the business”, it discovered “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.”
The e-commerce chain which sells Ralph Lauren and Balenciaga, has been loss-making in recent years.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the year ended 31 January 2023 was negative to the tune of £33.5m.
At the time, Frasers’ takeover offered a lifeline for the designer online retailer, which has struggled in recent years due to the actions of former leaders.