Mon, 06 May 2024 | BUSINESS SALE
Frasers Group has acquired the intellectual property of e-commerce fashion brand MATCHES from administrators, less than two months after placing the business into administration.
Frasers acquired MATCHES for £52 million in December 2023, but subsequently placed it into administration in March 2024, saying the brand had "consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses".
At the time, Frasers said that, despite MATCHES’ management team seeking 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."
In April, however, former MATCHES CEO Nick Beighton described the administration as “unnecessary” and said that he felt there had still been a possibility of the brand turning around.
According to administrators, they had undertaken an “extensive marketing process” for MATCHES and that 11 offers had been received by late March, but that no credible offers had been made.
Frasers, which is controlled by Mike Ashley, says it has now reached an agreement with administrators Teneo to acquire certain of the brand’s intellectual property assets for an undisclosed sum. The deal does not include any of MATCHES’ £80 million of stock or 250 remaining staff.
As part of the deal, Frasers has granted administrators a license to sell MATCHES’ stock “through a period of continued trading for the benefit of the administration”.
The group added that “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”.
According to an administrators’ report, the company owed around £36 million to more than 500 unsecured creditors, including luxury brands such as Prada, Gucci, Saint Laurent and Burberry. Many creditors are expected to receive less than a penny in the pound.
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