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Frasers Group has announced that it has put Matches into administration just two months after acquiring the business.
Frasers stated that the decision had been taken after Matches consistently missed its business plan targets and made material losses outside of funding from Frasers.
It is unclear whether Frasers is looking to retain control of the business following any pre-pack administration deal.
Frasers has stated that despite this move the company remains committed to the luxury market and its brand partners.
The company acquired Matches for £52m from Apax Partners, significantly less than the £600m Apax had invested into the fashion brand.
The company stated: “Whilst Matches’ management team has tried to try to find a way 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.”
