Today’s news in brief-21/12/23

Frasers Group has confirmed its acquisition of the Matches business from MF Intermediate Limited in a deal estimated at £52m. The deal involves the purchase of 100% of the shares of six companies, along with the senior and junior debt owed by these entities. The transaction, to be settled in cash from existing reserves and facilities, aims to strengthen Frasers’ luxury retail offering. Matches, which has faced recent losses, reported an adjusted EBITDA loss of £33.5m for the year ending January 31, 2023. Nick Beighton, CEO of Matches, expressed plans to collaborate with the Frasers team to enhance the business’s strategy and capitalise on its strengths.

Almost 4,500 retailers find themselves in critical financial distress as the UK faces poor consumer confidence, inflation, and elevated interest rates, according to data from Begbies Traynor. Analysing the first 10 weeks of Q4, the insolvency firm reported a 7.5% quarter-on-quarter increase in businesses facing significant financial distress, totalling 45,967 affected entities. The tough economic climate, coupled with consumers holding back spending, has intensified pressures on the retail sector, leading to a challenging Christmas season. The data also highlights a shift from online-only to brick-and-mortar stores, with an 11.7% increase in online-only businesses facing financial distress.

Spanish fashion group Mango announced a “record” year in 2023, anticipating full-year turnover to exceed €3bn (£2.6bn), surpassing its previous sales record. The group achieved a 26.2% year-on-year increase in pre-tax profits, closing 2022 with €103.3m (£91.6m). Mango expanded its online sales to 20 new countries, reaching over 110 markets globally, and opened more than 130 stores, including locations in London, Manchester, and Cork. The company aims to open 500 new stores in 2024, focusing on the UK, US, Spain, France, Italy, India, and Canada. Mango CEO Toni Ruiz, who became a 5% shareholder in December, played a key role in the decision to close the third-party brands offering on the online platform in October.