Matches seeks cash to fund turnaround plan
The fashion destination secured £20m of additional capital in June 2023 to support its growth plan, which was part of the previously announced £60m investment from owner Apax Partners
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Matches Fashion has reportedly hired an advisory firm as it seeks a cash injection to help fund its turnaround strategy, according to Drapers.
The outlet reported that Matches has hired Teneo to explore funding options as it seeks around £50m with it citing a source that “all options are on the table”.
Last month, Matches posted an adjusted EBITDA loss of £33.7m for FY22. For the year ended 31 January, revenues slightly slipped to £380.1m, compared to £386.6m in FY21. However, order demand came at £758.2m, up 12% to £677.1m reported the previous year.
Matches has also updated its FY23 trading performance and expects to deliver £10m of operational cost savings which “will result in a material improvement in the losses incurred by the company”.
The fashion destination secured £20m of additional capital in June 2023 to support its growth plan, which was part of the previously announced £60m investment from owner Apax Partners.
At the time the company said it is “now confident” in the financial and operational progress and expects to drive a further material reduction in losses and fixed costs supporting a return to profitability.
A spokesperson for Matches told Drapers: “As we previously announced in November, we have started discussions with our shareholder and lenders regarding the renewal of an asset-backed lending facility due on 31 August 2024.”
Retail Sector has contacted Matches for comment.
